An umbrella insurance policy covers what your auto and homeowners insurance does not cover. It’s a personal insurance policy to protect you from financial loss. It protects current and future finances against the cost of losing a lawsuit.
Umbrella policies generally have a much higher deductible because they expect your homeowners and auto insurance to pay the initial amount. In addition to covering your losses, most umbrella policies cover legal expenses above what your other policies will cover. You can meet with your local agent to learn what is covered under your specific policy.
Since an umbrella policy is considered secondary insurance, you will have to show coverage under your auto insurance and home insurance policies.
When you think about how litigious our society has become, it just makes sense to do everything you can to protect your finances and your assets in the event of an unforeseen event happening where the other party goes after you personally after an automobile accident or an accident on your property.
Unfortunately, the reality in today’s world is your chances of being sued in the event of an accident are high. So make sure you are properly covered and talk to your local agent to make sure you have all the right insurance in place for your home, automobile, and property.