Umbrella insurance provides extra liability coverage above and beyond the limits of your home, auto, or other personal insurance policies. It acts as an added layer of protection in case of major claims.
- Example:
Additional Liability Protection: Let’s say you cause a car accident and are found liable for significant property damage and medical costs that exceed the limits of your auto insurance policy. An umbrella policy could help cover the additional costs. For example, if your auto insurance covers $300,000 of a $1 million liability, your umbrella policy could pay the remaining $700,000.- Coverage for Lawsuits: Umbrella insurance also provides protection against large lawsuits. If someone sues you for defamation or slander, umbrella coverage can help pay for legal costs and any settlements or judgments against you.
Leave a Reply