Your auto and home or renters insurance is there to protect you in the event of an accident or disaster — but are you sure you have enough liability coverage?
Adding an umbrella policy, which goes above and beyond existing policies, could be a smart decision.
Learn more about an umbrella policy, including examples of when you might need one and how to get started.
What is umbrella insurance?
Umbrella insurance provides extra liability protection on top of what your automobile, homeowners or renter’s policy covers.
For example, if someone sues you for a covered event and the claim exceeds your policy’s liability limit, your umbrella policy may cover those extra expenses.
What does umbrella insurance cover?
Here’s another example: You’re driving home when a cyclist swerves out of the bike lane — and you can’t react fast enough to avoid hitting them.
The cyclist sustains injuries and sues for medical expenses and lost wages. Unfortunately, your auto insurance policy maxes out in liability coverage, and the cyclist is seeking payment from you. Fortunately, you have an umbrella policy, so you don’t have to worry.
Not only will an umbrella policy help in a situation like this, but you’ll also have the same benefits if someone is injured while visiting your home.
Who needs umbrella insurance?
Umbrella insurance can be a valuable tool if you have assets to protect.
It can also provide quite a bit of coverage relative to the price, because you may need to carry the maximum liability coverage available for your auto, homeowners or renters policy before you can purchase an umbrella policy.