What is Umbrella Insurance?
Umbrella and Excess is liability protection for individuals above a specific amount set forth in a basic policy issued by the primary insurer; or a self-insurer for losses over a stated amount; or an insured or self-insurer for known or unknown gaps in basic coverages or self-insured retentions.
In layman’s terms, most insurance policies have an upper limit of how much it would pay out in a claim, for example if you were to be sued. Say your policy will cover up to $250K, but you get sued for $500K, your umbrella policy would cover the difference. For most families, it’s an essential level of insurance that goes beyond what your home and auto policies cover. An umbrella policy can provide an additional layer of protection, giving you broader coverage if you’re sued and peace of mind knowing you’re protected.
Because everyone’s needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.