You rely on a wide range of insurance policies to protect your home, vehicles, and family. However, there are cases where the coverage on an individual policy may not be sufficient. To protect yourself from worst-case scenarios, get an umbrella insurance policy to fill the gaps in your coverage. Here’s more information about how this policy works and why you may need it.

What Does an Umbrella Insurance Policy Cover?

This type of policy is designed to kick in when you’ve exceeded the liability limits on another insurance policy. For example, if your home has been damaged extensively, and it’ll cost more to repair than the limit on your homeowner’s coverage, an umbrella policy will help you avoid heavy financial loss. Similarly, if you’re in an auto accident that results in large medical bills for yourself or another driver, umbrella insurance will apply once your auto insurance liability is exhausted.

When Would I Need Umbrella Coverage?

This type of insurance typically comes in handy during lawsuits. For example, if someone is injured in your home and decides to sue, umbrella coverage can apply toward the settlement. Deciding whether you need this policy is as simple as talking to your insurance agent and assessing your risk factors. Factors that increase your liability risks include homeownership, owning a dog or swimming pool, and having a teenage driver in your household.

What Won’t Umbrella Insurance Cover?

There are some cases where insurance won’t apply. For example, the policy won’t be applicable if you’ve caused damage to your property. Similarly, if you own a business, you’ll need a separate set of policies to protect your assets and equipment, even if the business is based in your home. The policy also won’t apply if you’ve acted in a criminal manner toward someone else, resulting in injury or property loss.

If you want to acquire an umbrella insurance policy, contact the team at Chanler Agency, Inc. Insurance in Geneseo and Livonia, NY. These professionals help homeowners throughout the Finger Lakes area protect their belongings and financial futures by offering an array of insurance policies. To get more information about their services, visit the website, or call (585) 243-5520.