Say you’re in a nasty car accident, which, unfortunately, was your fault. Now what? The only relief you’ve got is your insurance coverage.
The bad news: The person you injured is a MD, and the car accident broke their leg—badly. Doctors say they’ll be out of work for at least 60 days. This person has to go through surgery, followed by weeks of recovery and physical therapy. You’ve now totaled their Porsche and put them out of a few months of work.
The damages to his car and the medical expenses far exceed your liability coverages, and Doc is hiring an attorney to ensure the due bills are paid. You need to ensure they don’t go after your assets in court.
This is when Umbrella, or excess liability, coverage comes in.
In the case of an accident exceeding your automobile coverages, you need umbrella coverage to protect you from any financial hiccup. This coverage also protects you from being sued by the third party.
Umbrella includes additional coverages that are excluded from your insurance policies, such as being sued for slander. It covers legal defense beyond your limits. It covers the other party’s injuries or funeral costs, and property damage.
Limits usually start at 1M dollars, with very low payments.
To cover the incidences that exceed your limits and to protect your assets, look into adding Umbrella Coverage to your policy.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search for a local agent with our agent finder map.
Read more about KayLynn's background.
The Odds of Certain Events Happening in Your Life
Learn More About This Potentially Valuable Feature of Your Life Insurance Policy
Keeping Critical Papers in Their Place
We Work at Protecting Our Families Because They are Worth It
Decoding The Info in That Little Box
How to Create a Bucket List to Motivate You
The Answers to Some Off-the-Wall Questions
What You’ll Need and What to Do To File a Claim
It Can Be Easy to Forget to Change a Life Insurance Beneficiary
Do You Need a Million Dollar-Plus Life Insurance Policy?