Umbrella insurance gets its name by adding another layer of protection on top of your existing liability insurance policies. It’s used when someone is injured in a car accident, at your home, or at your business, and kicks in when your original policies have their limits exhausted. At Spring Grove Insurance in Spring Grove, IL, we’re here to help you understand how umbrella insurance works to your benefit.
Understanding Umbrella Insurance
An umbrella policy is a type of liability insurance that extends the limits of your existing liability insurance policies. Typically, an umbrella policy gives up to $1 million in extra coverage, but policies with higher amounts are available. It can be applied to homeowners, auto, and, in some cases, boat insurance policies.
The Importance of Umbrella Insurance
A liability policy pays out damages to someone injured by you in some way. That includes an auto accident or being injured at your home. Your insurance may not have enough coverage to pay for their damages, and you’ll find yourself paying the difference if you don’t have umbrella insurance.
How Umbrella Insurance WorksIft the injured party’s bills are more than your liability insurance will pay for, you can invoke the umbrella policy for coverage. The umbrella insurance starts paying when your original policy is exhausted and pays up to the maximum amount outlined in the umbrella policy.
Contact Spring Grove Insurance Today for More Information
Umbrella insurance protects you against the unexpected by paying for damages sustained by a third party. Call us at our Spring Grove, IL office to talk to us about how it works and what it covers. We’re here to show you how an umbrella policy can give you peace of mind and protect your assets.
