Your auto, home, and renter’s insurance policies all contain some amount of liability coverage, but there are limits to the covered expenses. They also don’t cover every situation, which could leave you exposed to a potentially catastrophic lawsuit. Umbrella policies are designed to reduce the risk of losses by extending the limits of other insurance policies to protect all of your assets.

What You Should Know About Umbrella Policies

What is an umbrella policy?

Umbrella policies are a type of liability coverage that kicks in when your home or auto insurance limits have been exceeded. For instance, if you only have $25,000 in liability coverage for your car but cause an accident resulting in $100,000 in damages, your auto policy will pay the maximum amount, while your umbrella policy picks up the rest.

What situations does an umbrella policy cover?

Umbrella insurance offers far-reaching protection against liability claims related to auto accidents, slander, bodily injuries, and property damage. In addition to covering the plaintiff’s losses, it will also pay the costs of your legal defense.

Who needs umbrella insurance?

People are involved in potentially dangerous situations on a regular basis, such as driving your car. Even having a pet can leave you open to lawsuits and expensive liability claims. For instance, if your dog bites a neighbor, the medical expenses can exceed the limits of your home insurance, which is when an umbrella policy is necessary.

Do renters need an umbrella policy?

Renters can still be held legally responsible if a guest is injured due to dangerous conditions in their home. You might also be named in a lawsuit related to auto accidents, dog bite injuries, or property damage if a neighbor breaks a window. Whether you own or rent your home, umbrella coverage provides a vital layer of protection.

The unexpected can occur at any time, which is why Consolidated Agency Inc is dedicated to helping people throughout Rochester, NY, and the surrounding counties protect what matters most. As an independent agency, they offer policies from a wide variety of carriers, allowing you to choose what’s best for your needs. Visit their website to learn more about the benefits of umbrella policies, get more tips and advice on Facebook, or call (585) 467-4110 to request a quote.