Umbrella insurance is a type of supplemental liability coverage that takes over where your regular policy ends. It raises your limits and covers any holes to offer you better liability protection. If you are unfamiliar with this type of insurance, below are answers to a few questions about umbrella insurance.

Frequently Asked Questions About Umbrella Insurance

What is it?

Umbrella insurance only works alongside another policy, such as auto, business, or homeowners insurance. If someone sues you or you face a liability claim under one of those policies, the umbrella policy takes over once you reach the limits of the underlying policy. Thus, if a lawsuit is for $1 million, but your auto insurance policy only contains $300,000 worth of liability coverage, the umbrella policy picks up the other $700,000.

When do you need it?

Because an umbrella policy is for protecting assets, it is only necessary if you have a significant amount to guard. For instance, under the lawsuit situation above, if you have property or retirement accounts worth $700,000, you would have to pay the amount beyond what your auto policy covers. However, with an umbrella policy, you wouldn’t have to liquidate your assets to pay, as the insurance company would cover the remainder.

How much do you need?

You should have enough coverage to protect all your assets, including real estate, savings accounts, and investment accounts. Umbrella policies usually start at $1 million and are available in one million dollar increments up to $10 million or more.

What does it cover that other policies don’t?

It protects you against specific tort claims that other policies exclude. For instance, it covers suits against you for false imprisonment, slander, libel, and defamation. Note that it only covers liability, not loss of or damage to your belongings.

To request an umbrella insurance policy, contact Patton Insurance Group in Springboro, OH. They serve clients in and around Warren County and offer unmatched customer care. They can also help you with auto, home, renters, life, and business insurance. Visit the website to learn more about the policies they offer. Call (937) 886-9966 to request a quote.