Umbrella Insurance

The Purpose of Umbrella Insurance

Umbrella insurance is coverage for handling liability issues. Should your existing liability coverage fall short, then your umbrella coverage can help. This type of policy addresses several financial claims, some of which are partially covered by standard policies. In most cases, umbrella insurance is activated when you are at fault and liable for damages that you cause someone else or their property.

An umbrella policy is most often used when vehicular accidents have resulted in damages to someone. Or in cases when someone visits your property and slips and hurts themselves. But in addition to incidents involving injuries, umbrella insurance protects your property, investments, and personal belongings because it helps pay expenses so you don’t have to. But in addition to damages to others, a rare or costly item in your home can be protected by this policy. So you see, this type of insurance offers several benefits.

An umbrella policy is a smart way to protect your assets. If you’re sued, then having the policy can keep you from having to pay out of pocket expenses. If you’re found liable for the damages, you’ll have enough coverage to take care of the expense. You already have liability coverage on your auto or homeowners’ insurance policy. It may seem like enough, but it’s also possible that it’s not.