Umbrella Insurance

Umbrella insurance is a special form of liability insurance that can help protect an individual from financial loss. This unique coverage is not an independent policy and is designed to help those that already have insurance pay for the costs that are not typically covered by other forms of insurance. This can include but is not limited to libel, slander, theft and several other scenarios that may place the individual at financial risk.

Who is it For?

An umbrella policy can be for just about anyone. This can include homeowners, renters and anyone that really owns any type of possession. Even those that do not own or rent their home can still benefit from this type of insurance. The expense of this coverage is reasonably affordable, making it possible for virtually any budget. Therefore, any adult that holds any type of assets should at least consider additional protection.

How Does It Work?

In the event of potential financial loss, umbrella kicks in. Say for example, homeowner insurance only covers a portion of a qualifying event, an umbrella policy may be able to cover the remaining portion. Or if someone is being sued, the policy can help with the financial blow. As with other types of insurance, there is a premium to be paid and various amounts of coverage that can be purchased, which is usually quite generous.

What Types Are There?

There are actually several different types of umbrella insurance policies. There is coverage for both individuals and businesses and sub-types among them. Some may be designated for general liability and cover the insured individual’s home, personal belongings and automobile or may be more specific as to what the liability coverage may be used for. The type chosen should be a reflection of personal needs, assets and budget.