An umbrella policy is a type of liability insurance that can help provide extra coverage beyond the limits of your standard auto insurance. It may help to cover large claims that exceed your regular policy’s limits, which can help you manage costs associated with legal expenses, medical bills, and property damage claims.
How umbrella insurance works
An umbrella policy may provide excess liability coverage once the liability limits on your auto insurance are exhausted, stepping in to help cover the remaining costs. Umbrella insurance can potentially cover:
- Third-party injuries and medical bills
- Legal defense costs in lawsuits
- Damage to third-party property
- Certain personal liability situations, such as libel or slander
Who needs umbrella insurance?
Umbrella insurance can be beneficial for those who face higher risks of large claims, such as:
- Individuals with a high net worth
- Business owners
- Drivers seeking extra coverage against expensive lawsuits
Typically available in coverage amounts of $1 to $5 million, an umbrella policy may offer coverage in case of costly legal battles or claims exceeding standard insurance limits.
Umbrella insurance vs. standard liability coverage
Liability insurance may cover costs up to the limits of your auto policy. However, once those limits are reached, you’re typically responsible for covering the remaining costs.
An umbrella policy may extend beyond these limits, which can help give broader coverage for additional situations not typically included in a standard policy.
Do you have questions?
If you’re unsure whether umbrella insurance is right for you, you can speak with an IIA agent to help discuss your insurance options. Call us today at 1-855-478-3705 for a free personalized insurance quote!