An umbrella policy offers additional coverage above and beyond the liability limits provided in a standard car or home insurance plan. It’s a secondary form of insurance that extends protection even after another personal policy has reached its maximum payout amount. This is designed to give policyholders more financial security should a claim arise against them. Here’s why you should consider purchasing an umbrella policy for yourself.

Protect Your Assets From Lawsuits

An umbrella policy can protect you from significant loss should you be found negligent in an incident that results in another party’s injury or property damage. If you cause a car accident or someone gets hurt on your property, your regular insurance policies will cover only a certain amount of liability. Without an umbrella policy to pay the rest, your assets and personal finances become vulnerable, as they can be used to cover the remaining portion of damages you’re liable for.

Gain Peace of Mind for a Low Cost

Similar to other types of insurance, an umbrella policy will provide you peace of mind that you’re properly prepared to deal with whatever disastrous situation you might face. Additionally, umbrella policies are typically inexpensive to add on to an existing insurance plan. For a low cost, you can increase your coverage and make sure you have the money to defend yourself in a lawsuit and pay for any settlements or judgments exceeding the liability limits of your standard policies.

Lawsuits are a common occurrence, making it crucial to have enough liability insurance to cover your financial responsibilities. If you are unsure whether you’re adequately protected, go over your current policies with an insurance agent. The professionals at Alcorn Insurance Agency are committed to helping the residents of Chama, NM, find the most suitable coverage to match their needs and budget requirements. Call (575) 756-2197 to discuss an umbrella policy, or visit their website to learn about the different products they have available.