Umbrella Insurance
At Riverside Farmers Insurance in Maryland, we’ve seen how home or auto insurance policies sometimes fail to cover all of the needs that an individual or company may have. After all, these policies come with limits, but emergencies, lawsuits, and other expenses don’t always follow these limits.
Every insurance policy has limits and coverage that are clearly defined for users. Unfortunately, life doesn’t keep costs in the neat confines of an insurance policy limit. That’s why some need an extra cushion in their insurance policy planning–an insurance policy that extends beyond the limitations of the other insurance policies called “umbrella insurance.”
What is umbrella insurance?
Similar to that rainy day fund that you keep in a jar on the bedside table, an umbrella insurance policy is there to kick in when all other insurance policies have been exhausted. While every umbrella insurance policy has different limits, specifics, and coverage, all umbrella insurance policies do have some similarities.
Every umbrella insurance policy can only be used in combination with other insurance policies. In the majority of cases, you can only file a claim with your umbrella insurance policy provider after you have reached the limits of the policies with which your umbrella insurance is connected.
What does umbrella insurance cover?
As an “excess liability coverage” option, umbrella insurance covers liability expenses that exceed a home insurance or auto insurance policy’s limit. There are usually stipulations on umbrella insurance policies that dictate what you can and can’t use the policy to cover.
While it's not for everyone, umbrella insurance can be a game-changer. When you work with one of our insurance agents, we'll advise you on whether an umbrella insurance policy would make sense for your specific situation. In general, it never hurts to ask about umbrella insurance as a homeowner or car owner.
To see if umbrella insurance is right for you, call Riverside Farmers Insurance in Maryland today!
