What is Umbrella Coverage
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.
By: KayLynn
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Pre-Planning Doesn’t Require Pre-Paying
You Don’t Have to Wait Until You Are Financially Ready to Pre-Plan Final Services
How to Encourage Kids to Have Healthier Eating Habits
They May Not Eat Perfectly But They Certainly Can Eat Better
The Rising Popularity of “Celebrations of Life”
Final Services Are Changing. The Need for Life Insurance Is Not.
Seven Good Reasons to Take Up Biking
There’s More to Biking Than Tight Pants and Stylish Helmets
The Most Compelling Reason to Get Life Insurance
Of the Dozens of Reasons to Acquire Life Insurance, This May Be the Most Important
Staying Healthier: A Home Gym in the Space of a Closet
Motivation May Be a Factor But Lack of Space Should Not
Life Insurance For All Phases of Life
Why Life Insurance Should be a Part of Your Financial Future
What Happens to Your Debts After You Die?
Debts Don’t Just Disappear. Here’s Why.
Five Events That Should Trigger a Call to Your Life Insurance Agent
Life Changes. When It Does It May Prompt a Call To Your Life Insurance Agent.
“You Might Need Life Insurance If…”
Life Insurance is for More than Just the Breadwinner