Umbrella Insurance

Do You Need Umbrella Insurance?

Umbrella insurance is like a safety net. It comes into play when other policies have been exhausted. It’s not a standalone policy that you can use without other insurance. Think of it as add-on insurance to your existing insurance.

An umbrella policy is ideal for anyone who wants to extend coverage on one or more of their insurance policies. It’s also good for people who believe they might exceed the coverage of their existing insurance policies. Small business owners and professionals like lawyers and doctors use it the most often.

How it Works

The umbrella policy extends coverage of existing policies. It can also fill gaps for things not already covered. For instance, a business owner might not have earthquake insurance, but an umbrella policy may cover the damage that property coverage does not. Another example is if a policyholder’s car insurance covered $20,000 but the total costs of an accident was $30,000, then the umbrella policy will pay the remainder.

Umbrella policies all do the same thing – extend coverage of an existing policy. But some policies may be for certain professions, such as lawyers.

Umbrella policies are usually affordable and versatile. They might even be more economical than extending a policy. For instance, rather than extending auto, homeowner, and business insurance, an individual can get a single umbrella policy to cover them all.

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