Choosing the right insurance policy can be stressful. You have to ensure you're getting the coverage you need and staying within your budget. From homeowners insurance to liability and life policies, umbrella insurance has become popular among consumers. But, what exactly is it, and how do you know if it's the right policy? The experts at Tammy Ross Insurance in Monroe, NC, share what you should know and how umbrella insurance can benefit you. 

Homeowners Insurance Experts Explain Umbrella Policies

What Is Umbrella Insurance?

Simply put, this type provides clients with extra coverage in addition to a traditional plan. Regular insurance policies have limits when it comes to how much they will actually cover, so umbrella insurance will kick in once damages have surpassed the traditional policy’s limit. For example, if your renter's policy covers up to $200,000 in damages, but you have $500,000 accrued, the umbrella policy will be there to help pay for the remaining $300,000 so you’re not stuck paying out of pocket.

Umbrella insurance also covers damages that aren’t included in a traditional policy, such as false arrest and libel or slander. Unlike a limited insurance plan, an umbrella policy can help protect you in the case of slander, property damage, bodily injury, or liability for landlords who own rentals. It provides extra peace mind, as it offers coverage beyond most policies’ limits, helping ensure you don’t have to pay out of pocket.

What Can It Be Used For?

Umbrella coverage can be purchased as an add-on for most traditional policies. Homeowners insurance, liability coverage, renters insurance, and commercial policies are just a few that can have an umbrella policy added on to offer optimal protection. Umbrella policies will also protect you if someone is suing you for libel or slander, personal liability, and false arrest; these situations aren’t covered by other policies. So if someone got hurt in your home or a renter fell in your unit due to a broken stair, the umbrella insurance policy will cover it.

How Do I Know if It's Right for Me?

Coverage needs vary from person to person, so if you're on the fence, talk to your local insurance agent about add-ons. They can walk you through all your available options and help you decide if an umbrella plan is best for your needs. But, as a general rule of thumb, umbrella coverage is well worth the extra protection, as it can save you hundreds of thousands of dollars in the long run.

For all your insurance needs in the Monroe, NC, area, visit the trusted team at Tammy Ross Insurance. As an independently owned agency since 1998, they're known for providing clients with premier customer service and coverage at the most affordable rates, from life to homeowners insurance. To learn more about their policies, visit them online for a free quote, or call (704) 233-4981 to set up your consultation today.