Umbrella Coverage

What Is Umbrella Coverage and Who Should Have It?

Most people understand the need to carry personal liability protection on their homes and vehicles. Those policies are bound by the limits you chose during the application process. Have you stopped to think about what happens when you are held responsible for more than that amount, though? Research into personal umbrella coverage shows that adding it to your policy can be an excellent solution in this type of situation.

What Is Umbrella Coverage?

Umbrella coverage is an additional policy that can be added to your insurance portfolio. It kicks in after you have exhausted the benefits of your primary insurance, usually after a catastrophic loss or lawsuit is filed against you. An umbrella policy is similar to excess liability coverage, but it offers more comprehensive protection. A few examples of what it may help pay for include:

  • Legal settlements or judgments
  • Legal fees incurred for a covered accident
  • Damages in level or slander cases

Who Should Have It?

In the event that you are found at fault for an accident, you would need to pay any amounts over your insurance policy’s stated liability limits. An umbrella policy can make the difference between starting over and having your assets seized or your wages garnished. That is why anyone who is concerned about safeguarding personal assets should have personal umbrella coverage added to their policy.

Talk to your insurance agent today about how personal umbrella coverage can help protect your assets.

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