What is Umbrella Insurance?

Personal umbrella insurance works much like an actual umbrella to keep you protected. Extra liability protection is offered by umbrella insurance to shield you from sizable claims or legal actions. Let’s dissect it a bit more: The sum of money asked to offset a loss is known as a claim. Your personal liability insurance can defend you against lawsuits alleging that you are responsible for someone else’s property damage or physical injury. 

Your protection from circumstances that might result in significant financial loss is what umbrella insurance is meant to provide. An umbrella policy might help fill out your insurance coverage if you own a second home, or a recreational vehicle is fully paid off on your primary residence, have a sizable amount of equity in your primary residence, or have other personal assets you wish to protect. Here are a few circumstances where umbrella insurance can assist protect you and your possessions. An agent can go through particular scenarios that apply to you in greater detail. For instance, would your policy limits be able to resist the other party’s claim if you or a member of your auto insurance policy were involved in an auto accident and they sued you for accident-related costs not covered by their vehicle policy, or would you be forced to pay out of pocket?

Consider the scenario when a visitor trips and falls on your deck, suffering a major injury. When someone sues for pain and suffering, your home’s insurance doesn’t fully cover the costs. An umbrella policy could be able to assist with paying such costs. When the coverage limitations of your house or vehicle insurance plans have been reached, umbrella insurance kicks in, providing you with additional security to help you weather the unforeseeable.