Accidents can happen to anyone, at any time, and without warning. The cost of damages can quickly add up, and sometimes, standard liability insurance that is provided for your home or auto policy is not enough to cover everything.
That’s where umbrella insurance comes in – it provides the extra protection you need in case of unexpected accidents. Umbrella insurance is a form of additional liability coverage beyond your existing policies.
It’s important to consider investing in umbrella insurance to expand your liability insurance coverage and protect your financial future.
Get a QuoteHow Does Umbrella Insurance Work?
Umbrella liability insurance provides additional protection for individuals beyond their primary liability policies. Think of umbrella insurance as a safety net that catches you when your primary liability insurance falls short.
The coverage provided by umbrella insurance is typically the same as liability insurance for a product (home, auto) but with higher limits for bodily injury and property damage.
Liability insurance typically has two types of limits, per occurrence and aggregate, that determine the maximum payouts for claims. Per occurrence limits specify the maximum amount covered for a single incident, while aggregate limits define the total coverage for all claims within the policy period.
For example, imagine that you’re hosting a party and a guest trips and falls on your slippery patio, sustaining an injury. The medical expenses and lost wages accumulate to $2 million, far exceeding the $1 million per occurrence limit of your homeowners insurance. This is where umbrella liability insurance comes in handy, covering the remaining $1 million, protecting you from being personally liable for total costs. If you happen to face more claims within the same policy period, thus exceeding your aggregate limit, umbrella insurance will also likely cover the difference.
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While umbrella insurance coverage is not legally required, it still provides invaluable protection for you and your family.
By investing in umbrella insurance, you can secure your financial future and the financial security of your family by protecting your assets against life’s surprising twists and turns. Umbrella insurance is not just for the wealthy or people with multiple assets, it’s a smart investment for anyone who wants to be prepared, no matter what happens.
Our team of expert personal insurance agents at The Insurance Alliance will help you find suitable umbrella insurance coverage. Our network of top insurance providers is committed to finding you the best insurance coverage at competitive rates.
Start strengthening your protection with umbrella insurance. Get a free quote from The Insurance Alliance today.