Umbrella Insurance is extra coverage for when you reach the limits of your homeowners, renters, or auto policies. However there are some restrictions with Umbrella Insurance, but if you contact me I can make sure this policy is right for you.
Umbrella Insurance Explained
To get a better sense of what Umbrella insurance is and how it would work, it helps to think about it in action.
Say you’re held liable for causing a car accident with multiple vehicles, and the cost to cover the damages and injuries is $650,000. However, the liability limits on your Auto policy are only $500,000.
In this case, your insurance would pay only $500,000 for the entire accident, and you would be responsible for the remaining $150,000 out of your own pocket!
With a Personal Umbrella policy, however, you could extend your liability limits beyond the maximum provided by your underlying policies. In this case, an Umbrella policy would provide liability limits above the $500,000 limit of your Auto policy, up to the limit you choose for your Umbrella policy (typically anywhere from $1 million up to $5 million in coverage). In other words, you wouldn’t be left paying the remaining $150,000.
Still not sure if this policy is for you?