Definition: Umbrella Policy
**always read your policy as coverages vary**
Umbrella Policies provide an extra layer of protection for your homeowners, auto and other liability insurance policies. This helps by increasing the amount of money available for large claims and major legal action that may occur. The policy only comes into effect once the liability limits on the policies underneath of it have been used.
But let's say you have a car accident and the other driver is injured terribly. It's your fault and your insurance pays out. But their injuries are racking up the medical bills and they are exceeding the limits of your car insurance policy.
That's where the umbrella kicks in, it will take on the rest of the payments up to the limit of the umbrella policy.
This can help for injuries, property damage, legal fees and some other situations that require liability insurance. Sometimes covering things that aren't even covered in the policy underneath it.
Interested in seeing how an umbrella could help you?
Give us a call at 800-843-2430.