What is Umbrella Insurance and What Does it Cover?

Posted on January 3, 2018 in Safety, Money Saving Tips, Insurance Tips, Umbrella Insurance,

Umbrella InsuranceUmbrella insurance is a type of liability insurance policy that will provide coverage for losses that are too expensive for your primary insurance policy to cover alone. Your primary policy (home or automobile insurance) has built-in limits to the amount that will be paid. For example, if someone falls on your property and requires medical care that amounts to $200,000, and your homeowners insurance policy only covers up to $100,000, the umbrella insurance policy would potentially cover the additional $100,000 of medical expenses. With the inflating cost of medical care and the increase in lawsuits, umbrella insurance should be seriously considered as a prudent addition to your current insurance policies.

Umbrella Insurance Coverage For Lawsuits

In addition to acting as a type of extension or backup to your primary insurance policies, umbrella insurance also covers some lawsuits that your other policies do not. For example, if you happen to get sued for something you posted on Twitter or Facebook, umbrella insurance will cover the damages and court costs. It will also cover the costs associated with damage that you might cause if you have an accident that occurs outside of your property and does not involve your vehicle.

What Is At Risk Without Umbrella Insurance

You may be tempted to think that you do not make enough money for an umbrella insurance policy to make sense for you. However, in the event of a lawsuit, you can lose a lot more than you may think. The money that you have saved in a bank account can obviously be lost, but a court can also require you to sell your house (in some states) and to give up your investments (including your retirement account). A court may even be able to take away money that you haven’t even earned yet by garnishing your wages.

If you are interested in umbrella insurance, especially if you own your own home or have investments, please read our Umbrella Insurance FAQs. Be sure to contact Assure America for all of your Ohio, West Virginia, Kentucky and Pennsylvania umbrella insurance needs.


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