An umbrella policy provides protection above the limits available in your traditional policies – think of it as insurance on top of your insurance. It can protect you in the event of an excessive lawsuit or large claims where your primary insurance may fall short.
Personal Umbrella Policy
Your personal umbrella insurance policy comes into play when the policy limits of your home, auto or other personal insurance policies have been reached. This policy helps cover additional costs above your standard policy limits so you are not personally exposed to pay out of pocket, or worse yet, make your personal assets vulnerable, in an expensive claim.
Here is an example when you would find an umbrella policy to be an important safeguard. Let’s say you are in an auto accident of which you are at fault and the cost of injuries you caused is $400,000. If your auto insurance bodily injury limit is $100,000, your traditional auto insurance company will cover that amount leaving an additional $300,000 unpaid and your personal responsibility. This is where your umbrella policy kicks in to protect you from having to pay that costly gap.
For more info be sure to watch this brief video on personal umbrella insurance.
Wondering just how vulnerable you are and how much additional coverage you need? Fill out this quick and easy form to get you started and then talk with a Brooks, Todd & McNeil agent about getting the coverage that keeps you protected.