Whether you are purchasing personal insurance or business insurance, umbrella insurance coverage is something you need for both. In fact, people who operate businesses from their homes need separate umbrella insurance policies for both their homes, or personal insurance protection, and their business insurance. Here’s what you need to know about umbrella insurance:
Umbrella insurance is a type of liability insurance that enhances other liability insurance coverage you have. While it does offer coverage in its own right against things like slander and libel, it is best known for the catch-all protection it offers in addition to your other liability insurance policies.
What this means is that your umbrella insurance provides coverage beyond the limits of other types of liability insurance such as:
Of course, you must have these types of insurance coverage for umbrella insurance to pick up the excess.
Every liability policy has coverage limits. That is the maximum amount of protection the plan provides. Anything beyond that, you are personally responsible for, including things like legal fees, judgments made against you, settlements, etc. Without umbrella insurance, you are on the hook for paying these expenses out of pocket. You may even be forced to liquidate assets including your home, your retirement savings, and even your children’s college funds to pay the damages.
Umbrella insurance kicks in once you’ve exceeded the limits of your standard liability coverage and pays the excess (up to the limits of your umbrella policy, of course). This means that you’re only on the hook for the deductible and whatever amount exceeds the total coverage of your primary liability policy and your umbrella insurance.
Still have questions about umbrella insurance and whether it’s the right choice for you? Contact us at Marla Williams Agency to learn more and see if you have adequate insurance protection.
While our office is located in Overland Park, KS, we serve all across Kansas, Missouri, Iowa, Nebraska, Colorado, Texas, and California.
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