Umbrella Insurance Basics
If you have insurance for your car, boat or house, you may still need extra coverage. This is because you might find yourself in a situation where your insurance is not enough. Umbrella insurance provides financial assistance when you’re traditional insurance has reached its limits. Umbrella insurance provides extra security just in case you need it.
Umbrella insurance helps with claims that are covered by standard insurance. This type of insurance becomes active when you are at fault for damages. When the liability coverage you already have has been used up, then this coverage will pay up to its limit. This policy is good for when you are in a car accident and have caused injuries. It can actually help with any liability claim.
In addition to injuries, umbrella insurance also helps protect other investments. For instance, if a rare item in your home is damaged, then umbrella coverage can help pay for replacement or repair. This coverage also helps if you are ever sued for libel, slander, or similar claims.
In short, umbrella insurance provides financial assistance on extremely high financial claims. This is a way to protect your assets during lawsuits. Without umbrella coverage, you would pay out-of-pocket for anything above the limits of your traditional insurance.