The term "umbrella insurance" may bring to mind images of lost rain gear, but it is actually a very useful and important type of coverage. First Insurance Co of Hawaii, the oldest and largest insurance company in Hawaii, explains below what umbrella insurance is and why you need it. 

What Is Umbrella Insurance?

Umbrella insurance is a type of supplemental liability security that provides additional coverage to your existing policies. Umbrella insurance works by filling in the gaps that other policies miss, and raises your liability limits considerably to give you more protection.

What Does Umbrella Insurance Cover?

Umbrella insurance protects your assets against loss, should you be sued or found responsible for someone else's property damage or medical expenses. For instance, if you were involved in a serious auto accident, umbrella insurance would cover liability costs above your car insurance limits. Another example is if your dog were to bite a neighbor in an attack that resulted in enormous medical bills, your umbrella insurance would pay the amount above your homeowners policy limit, up to your umbrella limit.

Why Do You Need Umbrella Insurance?

If you own a home, car, or savings or investment account, they are vulnerable to seizure if you are sued for more than your basic policies cover. A single catastrophic accident could leave you destitute if you don't have enough protection, which is why it’s so important to take that extra preventative step with the right insurance policy. 

First Insurance Co of Hawaii lets you bundle multiple policies, including an umbrella policy. For more than 100 years, they have provided businesses and individuals with top quality insurance products. For more information, visit their website, or contact your independent insurance agent. Don’t have an independent insurance agent? Click here to find one near you.