Umbrella insurance is separate from a general insurance policy and helps to cover liability and damages- picking up the slack where a general insurance policy stops- or covering what that policy won’t. An umbrella policy is an important part of protecting yourself, home or business from unforeseen circumstances that can negatively and financially impact your life, including: lawsuits, injuries, theft, natural disasters and much more.
If you are interested in getting an umbrella policy, 1st American Insurance Agency in Longmont, CO is here to walk you through the process. So, let’s consider what exactly is covered in an umbrella policy and why it is important to have in addition to a basic policy.
What Will an Umbrella Policy Cover?
Remember, an umbrella policy is separate, additional liability coverage and can be for your home, automobile, boat, business or other property. Coverage includes legal situations- including fees and damages if you are found liable-rental property coverage, injuries and other, unexpected situations that may arise.
How do I Know if my General Policy isn’t Enough?
As an umbrella policy provides additional coverage, it is a back up to your general policy to cover what it won’t. In example, if you have $200,000 worth of liability coverage on your general policy and you are sued and found liable to pay $300,000, your general policy won’t cover that. General insurance policies will only cover your own property damage or physical injuries- not others’. This is where you can avoid going bankrupt having to come up with the money out-of-pocket. Umbrella insurance includes at-fault damages and will keep you protected.
Having an umbrella policy is that added reassurance that your property is safe and that you are protecting your family and business from future potential losses. Avoid the headache of working with the unknown and protect yourself in advance with an umbrella insurance policy.