Umbrella Insurance Explained

November 11, 2020


A personal umbrella policy is called an “umbrella” policy because it provides liability coverage over and above your standard automobile insurance or homeowners insurance policy. An umbrella policy provides additional coverage or “excess liability” above the limits of the basic policies such as your auto policy. It can protect you from bodily injury liability claims and property damage liability claims and also provide a broader form of coverage and can help cover legal fees, false arrest, libel, and slander.

 

In the event of a major automobile accident in which you are held responsible for damages or bodily injuries, it is important that your assets and savings are protected. Did you know that your car, house, investments and retirement accounts, as well as normal checking and savings accounts and even future income, are all considered assets? Should you be sued for a lot of money and do not have enough liability insurance or an umbrella policy to cover those costs, all of your assets may be exposed.

 

The personal umbrella policy offers protection for you and your family against large and potentially devastating liability claims or legal judgments against you. Get automobile and umbrella insurance today by speaking with one of our licensed insurance agents. 

Frequently Asked Question About Umbrella Insurance

 

Can I be sued If I caused an automobile accident?

Yes, anyone can be sued if they cause an accident. To understand if you will be covered, please speak with one of our license agents to understand your coverage limits to protect your personal assets.

Does my auto insurance company offer umbrella insurance?

 Many auto insurance carriers offer umbrella policies. Speak with one of our licensed insurance agents to understand your options and eligibility for umbrella insurance coverage.

Is Umbrella insurance mandatory if I already have auto insurance?

No, umbrella insurance is not mandatory but it is great liability insurance protection to have in the event you are sued by someone as a result of causing an accident.

Must I carry higher auto insurance limits to qualify for an umbrella policy?

Yes, in most cases you must carry higher limits on your auto insurance policy to obtain umbrella insurance coverage. Speak with one of our licensed insurance agents today for information on increasing your auto insurance coverage limits.