clock January 16, 2015 comments No Comments flowchart Automobile InsuranceHomeowners InsuranceOur Blog tag Liability

umbrellaUmbrella insurance is a type of liability insurance that protects people from losing their current and future assets if they get involved in a situation where another person has the right to sue them. Umbrella insurance goes above and beyond other more common insurance policies, such as car insurance and homeowners insurance, to cover a greater amount and more situations. If people are sued and their other insurance policy picks up only a portion of the expense, their umbrella insurance policy can be used to pay the difference.

What Does Umbrella Insurance Cover?

Umbrella insurance covers many situations that other insurance policies do not cover. For example, if homeowners had a party and their porch broke, injuring their guests, their policy would pay for their guests’ medical bills. If people are sued because of comments they made on social media, their umbrella insurance would cover it. If a family gets into a car accident in a rental vehicle, their umbrella insurance would cover the damages. Umbrella insurance also covers the excess that car and homeowner’s insurance policies don’t pick up once homeowners reach their policy limits.

Who Needs Umbrella Insurance?

Absolutely every person can benefit from umbrella insurance. No one plans to get into an accident, and no one knows when a small mistake or misfortune could cost them millions. Even if people are careful, there is no way to prevent every accident. Umbrella insurance helps protect people’s assets and their futures against the unexpected. Even people who do not have much money to their name can still greatly benefit from umbrella insurance as it is possible for people to be sued for way more money than they have to their name. Having an umbrella insurance policy protects both the possessions people currently have as well as anything they gain down the road.

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