The Advantages of an Umbrella Policy

You might have heard someone talking about an umbrella policy and concluded that this type of insurance was only for the super-wealthy. Not so. It’s a tool to help you achieve peace of mind.

Why would you need it? Let’s say you have what seems like adequate homeowners and auto policies. And in addition to real estate, you have assets like retirement accounts or other savings. If someone injured as the result of your fault decides to sue you for an amount greater than your policy limit, he or she could go after these assets – even your future salary.

Umbrella coverage is a type of extended liability insurance. It’s an extra cushion to homeowners and auto policies. While these standard policies usually cover bodily injury and property damage liability, many umbrella policies also cover unfortunate events like false arrest, false imprisonment, defamation, eviction, malicious prosecution, wrongful entry and even defamation.

After liability limits in your auto or homeowners policies run out, you can look to umbrella coverage to help protect you. Since policies vary from state to state, it’s important to use an independent agent to review your needs and offer you a variety of choices to meet them. Contact the Prutting Insurance Group today for policies that cover all your insurance needs.