You may think your car and home insurance have you fully covered for any situation you may face, but chances are, they don’t. If you ever find yourself facing a substantial lawsuit, it’s likely that the liability limits on your policies won’t extend as far you need them to, which would leave you paying quite a bit out of pocket. Fortunately, an umbrella policy can relieve you of that burden. Alcorn Insurance Agency provides Chama, NM, residents with a variety of affordable insurance options to cover many different aspects of life. Don't live in Chama? No problem give us a call and we can still help you. The company’s professionals take the time to help clients understand everything they need to know to make the most informed decision about coverage.

Learn more about what an umbrella policy is below and how it can serve to protect your most important assets:

• What Is An Umbrella Policy Designed To Cover? As a type of liability insurance, umbrella policies are designed to shield you from the effects of a personal lawsuit. If the reward amount for someone who is suing you were to exceed the coverage limits of your home or car insurance, your umbrella policy would kick in and fill in the gap.

• What Are The Benefits Of An Umbrella Policy? Umbrella policies offer an additional layer of protection that will keep you from losing all your money and valuable assets in a lawsuit. Typically, they include coverage for property damage, bodily injury, libel or slander, legal fees, and other kinds of civil charges. 
• How Do You Decide If You Need An Umbrella Policy? There are a couple of main factors to consider when deciding if you need an umbrella policy. The first is what amount your total assets add up to and how significant of a difference there is between that number and what your auto and home insurance cover. Second, think about how great the possibility is of you getting sued. Do you spend much time on the road, have guests over all the time, own a dog, or anything else that would increase your risk?

You may never imagine yourself having to face a lawsuit, but the reality is that no one ever knows what situations are going to arise in their lifetime. This is what makes insurance such a critical factor of life, and an umbrella policy falls in the same category. Contact Alcorn Insurance Agency at (575) 756-2197, or visit their website for a full list of services.