Share:

If you have insurance in place to protect your home and vehicles, you’re already ahead of the game. Unfortunately, there may come a time when damages or a lawsuit filed by an injured person will exceed your coverage limits. This is when having umbrella insurance will provide financial peace of mind. Here are some frequently asked questions about the supplemental policy and why it pays to have it.

4 Frequently Asked Questions About Umbrella Insurance

How does it work?

The policy offers additional coverage beyond an existing homeowner’s or auto insurance policy. These plans provide you with a certain dollar amount to pay for repairs, replacements, and medical expenses. Once that limit is reached, your insurance provider will no longer pay for the claim. It will then become your responsibility to cover any outstanding costs. Umbrella insurance adds increased coverage amounts so that you won’t have to pay out of pocket.

What is covered?

umbrella insuranceMost policies cover a range of liabilities. For example, someone is seriously injured in your home and sues you. In addition to medical expenses, they may also seek wage loss and compensation for pain and suffering. The amount might far exceed your homeowner’s insurance limits. Umbrella coverage pays above those limits. Other coverage areas can include significant property or vehicle damage in an accident where you’re at fault. There are also provisions for claims of libel, slander, copyright infringement, and other extenuating circumstances.

How much coverage do I need?

Umbrella insurance is typically available in increments ranging from $1 million to $5 million. When determining how much coverage you may need, consider how a lawsuit or other liability may affect your income. If you have significant and expensive assets, it’s worth having extended coverage to protect them from damage or theft. Finally, think about the liabilities that can occur in your home or vehicle. A professional insurance agent will discuss these factors with you to determine how much coverage you need.

What’s not covered?

Damages caused by natural floods are generally not covered under umbrella insurance. You will have to secure a separate flood insurance policy. Depending on your policy, car rentals and accidents with uninsured or underinsured drivers are typically not covered. Speak to an agent to learn what your umbrella insurance policy specifically doesn’t cover.

 

Since 1949, Albers Insurance Agency in Cincinnati, OH, has come to the aid of individuals and business owners by providing competitive and reliable protection. The team of friendly and experienced agents takes the time to listen to their client’s unique needs and is always available to answer questions. Call (513) 891-3304 to learn more about umbrella insurance. You can also get details online about the insurance companies this independent agency works with.

tracking