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

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

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

Life Insurance: Why Waiting Limits Your Options

Waiting to purchase life insurance just may limit your options. Here’s how to maximize your choices when buying life insurance.

Five Cents a Week for Life Insurance? Wait…There’s more!

There Was a Life Insurance Version of the Milk Man and Home Doctor Visit

The Difference Between Term Life Insurance and Permanent Life Insurance Explained

This is a Great Way to Start with Life Insurance

A Closer Look at the Life Insurance Waiver of Premium Benefit

Many Life Insurance Policies Contain a Powerful, Hidden Benefit

Can I Buy Life Insurance if I’m Dying?

Insurance Can’t be Secured Following a Calamity. The Time to Act is Now

The Two Biggest Factors That Make Life Insurance Rates Increase

Age and Health Are the Biggest Contributors to Increasing Life Insurance Costs

Life Insurance: Buy What You Can Afford

Buying a Large Amount of Life Insurance May Be Pointless If You Can’t Afford It

Why an Independent Agent is Your Best Option for Life Insurance Quotes

Choice is Good. It’s Just One Reason an Independent Insurance Agent May Be Best for You.

Getting Married? Now’s a Good Time to Consider Life Insurance

Marriage is one of those benchmark times when you should have your life insurance reviewed. We can help.

Why Life Insurance Should Be a Fundamental Part of Your Financial Plan

How Are You Protecting Your Money Machine?

Leave a Comment