What Is Umbrella Insurance? What Are Its Benefits?
Umbrella insurance is a type of personal liability insurance that provides an extra layer of protection beyond the limits of your existing insurance policies, such as auto, homeowners, or renters insurance. It kicks in when your standard liability coverage has been exhausted, offering broader protection against large claims and lawsuits. Pichard Insurance Agency provides umbrella insurance in Tallahassee, Havana, FL, Monticello, FL, Quincy, FL, Crawfordville, FL and surrounding areas.
For example, if you’re found liable in a car accident and the damages exceed your auto insurance limits, umbrella insurance can cover the remaining costs, including legal fees, medical bills, and damages awarded. It also covers incidents not typically included in other policies, like slander, libel, false arrest, or rental property liabilities.
Benefits of Umbrella Insurance
Extra Liability Coverage
Umbrella insurance provides significant additional coverage—often starting at $1 million—beyond the limits of your primary insurance policies. This can protect your assets and future earnings from costly lawsuits or claims.
Broader Protection
It covers a wide range of liability situations that may not be included in standard policies, such as defamation (libel or slander), false imprisonment, or incidents occurring while traveling abroad.
Affordable Premiums
Despite offering high coverage limits, umbrella insurance is relatively inexpensive. Since it only pays out after your other policies have been exhausted, premiums are typically low, making it a cost-effective way to gain peace of mind.
Covers Legal Costs
Umbrella insurance often covers legal defense costs, even if you are not found liable. This can include attorney fees, court costs, and other legal expenses.
Protection for the Whole Family
In most cases, umbrella insurance covers not just the policyholder, but also other members of the household, including spouses and children, offering comprehensive family liability protection.
In summary, umbrella insurance acts as a financial safety net, providing vital protection against unexpected, high-cost liability claims that could otherwise jeopardize your financial future.
Should you have any questions, feel free to give us a call.
