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

 

 

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt
Search in comments
Filter by Custom Post Type

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Want to learn more about
our blog writer?

Read more about KayLynn's background.

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt
Search in comments
Filter by Custom Post Type

Insurance Term of the Day: Motor Vehicle Report (MVR)

What is a MVR

Teen safety tips for winter driving

Rookies on Ice

Insurance Term of the Day: Escrow

Learn about Escrow

Cyber Security

Let’s talk about the types of cyber crimes, cyber risks, and prevention.

FDIC

Is my money in the bank insured?

9 Tips to Keeping a Clean Chimney

Why is a clean chimney essential to our health?

Black Friday

How does insurance play a role in America’s most popular day for shopping?

Build Your House With Bricks

Is homeowners insurance required if your house is paid off?

Insurance Term of the Day: Preferred Risk

Are YOU a preferred risk?

Don’t Stop the Music

Did you know musicians need insurance, too?

Leave a Comment





Translate »