Umbrella insurance is a type of secondary insurance. If your liability expenses go beyond what's covered by your standard policy, umbrella insurance will cover the difference. Umbrella insurance has coverage limits as well, but they are much higher than the limits on standard policies.
Umbrella insurance can add additional liability to all your insurance policies. These include homeowners, renters, auto, and recreational vehicle insurance. Your primary policies must meet the minimum liability requirements set by the umbrella policy. When you have a claim, your primary insurance will cover up to its limit. If your liability is greater than the threshold, umbrella insurance will cover the remaining liability.
Lawsuits are widespread today, and in some cases, the judge may award damages as they see fit. In addition to damages, if someone is injured, you may have to pay for lost wages and medical expenses. If the injury prevents the person from doing their job or they need extensive medical care, this amount can be very high. Liability will also cover your legal defense fees. These can be quite expensive as well.
If a judgment against you is made, it's possible for your assets to be seized and wages to be withheld if you don't have proper coverage. A costly accident could ruin your financial security now and in the future.
Umbrella insurance starts at 1 million dollars of coverage. Most companies offer 1,2,3, and 5 million. Some companies will offer up to $10 million. Consider the worth of your assets and future assets when you are determining how much coverage you need.
If you need umbrella insurance, contact us at Caluori Insurance in Rhode Island. We can help you keep your finances and assets safe in the event of an accident.
