What is Umbrella Insurance?

If you’re a homeowner or if you currently rent, you may already know what umbrella insurance is and you might even have it. If you haven’t heard about umbrella insurance, you’re likely asking yourself ‘what is umbrella insurance?’ and ‘why would I need it?’ While it’s not the kind of protection you get when your umbrella gives out in the middle of a rainstorm, it is the kind of insurance that you have waiting for a rainy day. Keep reading if you want to learn more about umbrella insurance and why you may want to have the extra layer of protection it provides.

Everyone is familiar with the protection that insurance such as car insurance provides and if you’re a homeowner or renter, you probably already have protection plans like home insurance and/or renter’s insurance in place. While insurance can protect you from many disasters, each individual plan has limitations. So what happens when your car is unfortunately totaled and your auto insurance policy has maxed out? Or what will happen if your pet insurance only covers short-term pet illnesses and not ongoing expenses like unique procedures or medicines? That’s where umbrella insurance steps in to save the day.

Umbrella insurance is a type of liability insurance that individuals and families hold in excess of other policies. In many circumstances, umbrella insurance can serve as the primary insurance for liabilities or losses not covered by your other policies. When a person’s primary policy is exhausted, umbrella insurance is the additional cushion needed to protect whatever is being covered or cared for. In some cases, umbrella insurance may even cover risks or damages that may have not been covered in a person’s primary policy and often brings an added sense of relief.

Umbrella insurance coverage can vary from policy to policy, so it’s wise to speak with your agent about how your coverage will work in conjunction with the current plans you have in place. If your agent is super detailed and cares about the bigger picture, like our agents at Hello Covered, they can recommend adjustments in your other policies that will better suit your umbrella insurance policy and potentially save you money. The main source of umbrella insurance claims are made to cover further protection in auto accidents, though umbrella insurance can work in addition to a wide range of policies.

So what should you take away from all this information? Insurance plans often have policies and limitations in place that may lead to claims not being covered, you can do yourself a favor and add another layer of protection by securing umbrella insurance.

If you’re thinking about adding umbrella insurance to your existing insurance plan, let us be the first to say you’re on the right path. It’s one of the wisest decisions you can make to ensure deeper levels of protection for the things that matter most to you.

If you’d like to get started with exploring umbrella insurance plans that suit your unique needs, budget, and lifestyle, fill out a quote form today and our team at Hello Covered will get you started.