Hopefully you already have auto insurance for all vehicles and rental insurance or homeowners insurance policies in place, which is great! But, you might want to consider looking at the idea of adding an umbrella policy on top of the coverage that you already have. Why? And what does it cover or not cover? How do you know if you need one? All of that, and more, below!
What is an umbrella policy?
This is a term that is often used to describe what is essentially extra or gap insurance. This is like a topper for the existing policies that you have, and it can offer a lot of peace of mind as the cost of, well, everything continues to rise. If you want to know that you’ve got the right protection in place above and beyond your existing insurance policies, an umbrella policy helps you cover that basis.
What does an umbrella policy cover?
Are you looking for more detail? The thing to focus on with this policy is that it isn’t intended to actually replace your current homeowners or auto insurance. It simply adds a padding of protection to it, after that plan is exhausted.
An umbrella cover policy can cover extra payouts required for an accident. For example, medical costs or car repair costs to the other person impacted that are above your coverage limits. Since these amounts can add up very quickly, you could be paying out upwards of $50 000. That can be hard for many people to come up with no warning!
Many policies may cover liability, medical costs, payouts for auto, car, boat, ATV insurance, etc. They are added to the policies that you most want to use them for, too.
The umbrella policy would cover those extra costs so that you don’t have to come up with that cash itself, borrow or bankrupt your family. It can offer a lot of peace of mind to those who don’t have a lot of extra funds sitting around to draw from.
What is excluded from an umbrella policy?
This kind of policy is intended to protect you from what other people are asking from you. As such, it usually doesn’t cover our own kind of damage expenses, medical costs, and more. This kind of policy is just to apply to any charges being asked of you from the other party.
How do I know if I need one?
If you’re curious to know and inquire whether or not you should have one of these policies in place, you’re going to want to consider talking to your local independent insurance agent like Harbour Insurance Services. We will know your own specific situation, which is going to help you get a really personalized approach to whether or not this is the kind of insurance that you need to have in place for your own needs.
While these aren’t necessarily required for every single person in the world, they can be really helpful by making sure that you have the coverage that you need and deserve for proper protection in medical, liability, and car repair costs when an accident ends up causing more damage than you are covered for under your existing policy!
Contact Harbour Insurance Services, in League City, at (281) 520-4090 today, for a free quote and to answer any questions you may have with respect to your personal insurance needs. Oh, yes, we also offer commercial insurance for local businesses as well!