How Do Umbrella Insurance Policies Work? 

Whether you’re a homeowner, a business owner or simply seeking peace of mind, understanding umbrella insurance is vital.

In life, uncertainty is inevitable, and unexpected events can occur at any moment.

While you might already have auto, homeowners or renters insurance, it’s essential to recognize that umbrella insurance can offer an additional layer of crucial protection.

What is Umbrella Insurance?

Umbrella insurance can offer extra financial protection for your savings and assets. It can provide liability coverage beyond what is offered by your existing policies, such as auto or homeowners insurance.

If you’re liable for injuries or property damage, and your other policies don’t fully cover the costs, an umbrella policy can help bridge the gap. This coverage is especially valuable when medical bills or repairs exceed the limits of your primary auto, homeowners or boat insurance policies.

How Does it Work?

Umbrella insurance extends beyond your primary policies, offering additional liability coverage. For instance, if your auto insurance has a $300,000 liability limit and your umbrella policy offers $1 million, your total liability coverage would be $1.3 million.

This type of insurance can typically financially cover personal injuries, property damage, libel, slander, false arrest and certain lawsuits. When your primary policy limits are exhausted, the umbrella policy can kick in.

Eligibility often requires minimum liability coverage on your primary policies. Remember to review exclusions and consider factors such as location, assets and risk profile when assessing the cost.

Who Needs it?

The following types of people may want to consider getting this type of insurance:

• High-net-worth individuals—If you have substantial assets, umbrella insurance can offer an extra financial safety net.
• Homeowners and property owners—Owning a home, rental property or other valuable assets can increase your exposure to liability. Umbrella insurance can financially protect you in case of accidents or lawsuits related to your property.
• Business owners—Business owners face additional risks. An umbrella policy can cover liability arising from business activities, such as customer injuries or property damage.
• Frequent travelers—Traveling exposes you to different environments and potential risks. Umbrella insurance can offer peace of mind when you’re away from home.

Umbrella Insurance in Woodstock, GA

Contact Kris D Rogers & Associates to determine if umbrella insurance aligns with your circumstances. We can offer coverage recommendations for your personal or business needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.