What Does Umbrella Insurance Cover?

Umbrella coverage is an additional liability insurance plan that’s designed to go beyond the limits of various standard insurance policies like home, automobile, or watercraft insurance. It provides extra security to anyone who is at risk of being sued for damaging another person’s property or injuring others in an accident. Umbrella coverage also protects against vandalism, libel, invasion of privacy, and slander.

Simply put, this coverage will supplement your basic liability policies because it has a much higher limit. So, once your original plan is exhausted, the umbrella insurance coverage will kick in. This added policy is useful if you own valuable assets or a lot of assets and you are at risk of being sued. Now, Longmont, CO residents can rely on 1st American Insurance Agency to get umbrella insurance.

How it works

Your umbrella coverage may come into play whenever you’re found accountable for damages and you have to pay for the losses or when you are prosecuted and you have to cater for your legal fees. The umbrella policy will only pay once the standard liability coverage limits are exhausted or if an entitlement isn’t included in the underlying liability coverage. Your insurer can pay the settlement up to your coverage limits. However, if the settlement amounts still exceed your umbrella coverage limits, you’ll be forced to pay the remaining amount out of your pocket.

Why is umbrella coverage vital?

Your house, car, retirement plan, investment accounts, and your normal savings and checking accounts are considered assets. If you are sued, all these assets will be at risk if you don’t have adequate liability insurance to protect you. Fortunately, an umbrella policy will ensure your assets are not exposed. This way, you will be protected regardless of the situation at hand.

Contact us at 1st American Insurance Agency for more information on umbrella insurance in Longmont, CO.