Shopping for insurance is often a confusing and complex task—in part due to the wide variety of coverage options available. However, one avenue that is particularly worth exploring is an umbrella insurance policy. The following information offers valuable knowledge many people use to determine if they need this type of protection. 

Common Questions Concerning Umbrella Insurance 

What is umbrella insurance?

An umbrella insurance policy is designed to provide an extra layer of liability protection. It has higher coverage limits than what’s available in standard home and auto policies. In the event you’re found financially responsible for a claim or lawsuit that’s filed against you, it will kick in to pay for any damages that exceed the limits of your other policies. 

What does it cover?

Umbrella insurance offers protection for many different circumstances you can be held liable for. This includes property damages, bodily injuries, libel, and slander. Aside from your home and vehicle, it can also increase your liability limits for a boat, motorcycle, RV, or rental property. Additionally, it will help pay for legal fees that arise due to a lawsuit. 

How do I know if I can benefit from an umbrella policy?

This is a litigious society and even if your income and assets are modest, you can be named the subject of a big lawsuit. Without an umbrella insurance policy, your assets become vulnerable and you risk having to pay substantial medical bills or court settlements out of pocket. As such, the majority of people can benefit from increased liability coverage. 

How much coverage should I purchase?

Deciding how much coverage you need will depend on several factors. You should consider anything that puts you at a greater risk of being sued, such as having a long commute to work or owning a swimming pool. It’s also important to take into account the value of all your assets and your potential loss of future earnings. An agent can help review your options and decide on an appropriate policy amount.

If you’re interested in learning more about umbrella coverage, turn to Mid-Alliance Insurance Associates in Lincoln, NE. Using their industry expertise, they’ll thoroughly assess your unique situation and explain how an umbrella insurance policy can apply. For decades, they’ve been helping clients gain peace of mind by providing reliable and affordable products that offer protection against life’s array of unexpected events. Call (402) 421-7800 to set up an appointment or visit them online to learn more about their services.