An umbrella policy covers you when your basic liability insurance doesn’t. This insurance doesn’t take the place of standard homeowner’s, auto or recreational vehicle insurance. Instead, it takes over when those policies have been depleted. This is why you need umbrella insurance…
Still confused? Imagine these scenarios:
- There is a crack in the sidewalk in front of your house. Your neighbor falls and sues you for damages, pain and suffering. Your homeowner’s insurance may not cover the full amount of the claim even if it is found that you are at fault. The umbrella policy kicks in where the homeowner’s policy doesn’t.
- You take your dog to a dog park and he gets into a fight with another pet. You are sued for veterinarian fees. The umbrella policy takes care of this problem.
- You are in a two-car automobile accident. The other drive is severely injured. While your liability insurance covers most of the medical expenses, there are still more that you have to pay out of pocket. That amount is covered with an umbrella policy.
An umbrella policy is important to protect you against these situations that could be financially devastating. However, there are certain things an umbrella policy will not cover. An umbrella policy will not take over if you knowingly damage property or commit some other crime. It also doesn’t cover your own property. For instance, if your sewage line backs up and floods your home, damaging floors and furniture, the umbrella policy cannot be used.
If you are not sure what type of coverage you need, it is a good idea to talk with an expert. Insurance professionals can guide you through the sometimes confusing concepts surrounding different types of policies. They will also make sure you aren’t left uncovered if you face a catastrophic situation.
Private Management Insurance Agency is highly willing to offer whatever assistance you may need at each step of the quoting and transaction process. You can reach our customer service team on Monday through Friday from 9 am-5 pm PST— Call us at (858) 252-4111, or you can also set a schedule with us just by clicking here.