Umbrella insurance operates as additional liability coverage that extends over and above normal insurance policy limits, such as auto or homeowner's insurance. It is often described as an extra layer of protection against a possible claim or a lawsuit that may not be covered by the underlying insurance policies. It may also offer a broader scope of coverage than the underlying insurance policies.
Once the underlying policy limits are exhausted in a claim or a lawsuit, the umbrella policy is triggered. This additional coverage can be extremely helpful if the insured has significant assets and is at a higher risk of being sued. For example, if an underlying auto insurance policy has liability limits of $300k and a claim for $500k is filed against the insured and the insured is found liable, the additional $200k may be forfeited from the insured’s personal assets if an umbrella policy is not in place. The umbrella may also pay for other legal costs, such as defense or court costs, or claims like libel, slander or invasion of privacy. An umbrella policy is an inexpensive solution to help protect your hard earned assets.
Our agency recommends that every person with something to protect should consider an umbrella insurance policy. The reason is because in the rare event that an individual becomes involved in a large claim or lawsuit, he/she could be ordered to pay a legal judgment from his/her personal assets or future earnings. This could be financially devastating, to say the least. People that own significant assets such as real estate or retirement funds, should consider higher umbrella liability limits. The more you have to lose, the more protection you’ll want to have in place.
Call our offices in Washington, 724-222-3690 or in Uniontown, 724-437-7147 and ask us about umbrella insurance coverage today.
