Basics of Umbrella Insurance

With all of the insurance policies you have, from auto to homeowners insurance, it is easy to think that you have enough coverage in any event. However, if you are in an accident, or somebody gets injured at your home, the cost of paying for the damages and medical payments can easily add up. As the bills add up, your liability coverage may not provide enough coverage. A personal umbrella policy can provide the extra liability coverage that is needed to financially protect you in any situation.

Typical umbrella insurance policies provide $1 million in liability coverage. Many people think that this is much more insurance coverage than they need. However, if you are at fault for a car accident, you are not responsible to pay for the damages to the other vehicle, as well as the medical payments of the other person, and any lost wages. If your auto insurance only have $300,000 in liability coverage, and the total cost is $800,000, you would be responsible for the other $500,000 that is not covered by your auto insurance. If you do not have the financial means to pay the cost out of pocket, your wages can be garnished, or assets seized in order to cover the cost. A $1 million umbrella policy would provide the extra coverage to ensure that you would not have to pay out of pocket.

Umbrella insurance policies also provide protection against slander or defamation of character, as well as certain decisions that you may have made as a volunteer member of a nonprofit board.

For the most comprehensive umbrella insurance policy to ensure you are protected in any situation, contact the Insurance Shop in White Bear Lake, Minnesota. As an independent insurance agency, we can provide you with the best insurance policies to best fit all of your needs, all at the right price.