How Does Umbrella Insurance Work?

There is a low-cost way to get extra liability coverage. It’s called umbrella insurance. These plans provide you with additional coverage that is applied on top of your traditional insurance plans. To learn more about how umbrella insurance works, continue reading. 

What Is Umbrella Insurance?

Umbrella insurance is a form of personal liability insurance. It can prove to be invaluable when you are faced with liability claims that exceed what your homeowner’s and auto insurance will cover. If you own a boat or water vehicle, umbrella insurance will also pay excess liability claims that exceed your watercraft liability insurance. 

How Does Umbrella Insurance Work?

Umbrella insurance covers claims that exceed your other insurance limits. For example, if you are in an accident that costs you $300,000, but your auto insurance only covers up to $250,000, an umbrella insurance policy will pay the difference. The same applies in instances where your homeowner’s insurance policy only covers a portion of the claim you are facing. 

Umbrella insurance covers not only the policyholder but also their family and household. Therefore, if you have a teenager that is not the best driver, you can trust that your umbrella insurance will cover any additional expenses incurred if they are in an accident that injures somebody. 

Who Needs Umbrella Insurance?

Umbrella insurance is a good product for people who feel their traditional insurance may not cover all of their liability. Another suggestion some experts make is to purchase umbrella insurance that is equal to the total value of your assets. Whether you need umbrella insurance depends on your unique situation, so speak to a skilled advisor when planning. 

Generally, some people are more likely to need an umbrella policy than others. This applies to people who engage in some activity that puts them at greater risk of incurring excess liability claims. If you own significant property, it’s also important to use umbrella insurance to protect your interests. 

Learn More About Umbrella Insurance

You can learn more about what umbrella insurance has to offer by contacting Insured For Life. We will help you determine whether your life circumstances warrant the purchase of an umbrella insurance policy, then help you find one that fits your needs. 

To get started with a free quote and consultation, call 888-989-0079.