Umbrella
Umbrella insurance policies are essentially extensions to your original policy. Umbrella policies that are tailored to you will provide you with far-reaching protection and complete financial coverage. Umbrella insurance can cover injuries and property damage when your policy limit is reached. Covering all aspects of your life is possible when you purchase an umbrella policy. For claims that are excluded by your insurance company, you could be responsible for paying out of pocket. If you are not able to pay for it yourself, umbrella policies will help cover these unique situations.
Accidents can lead to significant financial liability for an individual or a business. Umbrella insurance helps to provide that little extra cushion that can save you thousands of dollars in the long run.
How Does An Umbrella Insurance Policy Work?
Umbrella insurance is a type of liability insurance that will help extend the limits of your existing policies. Umbrella insurance policies will provide coverage that auto, homeowners, and commercial policies will never be able to offer. If you are found liable for an accident, the auto insurance may only cover $300,000 in damages while the total cost is $500,000. Umbrella insurance will cover the rest of the $200,000 cost to help prevent debt or financial strain.
Claims That Are Covered By Umbrella Insurance
You need umbrella insurance if you are worried that your insurance can not cover all of your assets. Umbrella policies can be looked at like real umbrellas, you will survive if you get wet in the rain or snow, but it is more convenient to have the protection of an umbrella. These extender policies cover the following,
- Injuries
- Damage to property
- Certain lawsuits
- Personal liability situations
Coverage will also be provided if you are ever sued for:
- Slander
- Libel
- False arrest
- Shock or mental anguish
- Malicious prosecution
- Or another emotionally damaging claim
Who Should Consider Umbrella Insurance?
Extra coverage is a great option for all individuals and businesses, but those who have a lot of high-value items or are managing many people will benefit most from umbrella policies. Businesses that can not afford to pay for legal claims or property damage should consider umbrella policies. There are insurance types that are particularly appealing to business owners, landlords, people with high net worth, or those with many assets.
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How Much Does It Cost?
The umbrella policy cost is based on how much coverage you choose to buy. If you feel that your basic policy is comprehensive, you may only need a few hundred dollars of extra coverage. Other factors like location, types of vehicles, multiple homes, or other expensive pieces like artwork can increase the price. This is why shopping policy options are helpful so that you don’t overpay for coverage.
Obtaining Umbrella Insurance
Adding umbrella coverage to your policy will require you to have a certain minimum liability limit on an existing policy. Most insurance providers will offer umbrella coverage as an add-on to existing policyholders, so the best way to get umbrella insurance is to talk with your insurance representative.
When you are looking for an additional policy, compare quotes from different insurance companies and multiple providers. This will help you find the best price and learn what you can bundle to save money. You can also customize your deductible for umbrella policies depending on your potential exposure to risk. Because you are already paying for a base policy from a company, they may give you a slight discount when adding this extender.
Policy Shopping Help From Our Brokers
Tower Insurance Brokers can help you find specific policies for your unique situation. While most insurance is comprehensive, we recommend umbrella policies for businesses or those with lots of physical assets. Working with a broker allows you the freedom to go about your day, while we look at all the best quotes. We can break down what will be covered in each insurance policy and provide insight into the best one.
Tower Insurance Brokers has many insurance experts and those who are well-versed in the lingo. Reach out to us to learn more about how we can help you and how we can save you money on monthly insurance payments. Having your car, house, and expensive items protected by insurance provides peace of mind in your day-to-day life.