Woodstock, Georgia often ask us, “What is umbrella insurance?” No, it doesn’t protect you from the rain, like the name might imply. It does, however, offer extra liability coverage. Umbrella insurance basically fills in any limitations existing in your current insurance coverage.Many of our clients in
Accidents do happen, and if you were involved in a lawsuit with a judgment that is more than what your normal auto insurance or homeowners insurance policies cover, the umbrella insurance policy protects your out of pocket expenses and your assets as well.
There is a myth that often circles umbrella insurance that it is something that only the wealthy need and that it is not affordable for those who do not earn a substantial amount of money. This is entirely untrue. While wealthy people may need it even more, it is a valuable insurance policy for everyone.
Most people who have over $200k in assets should not think twice about adding umbrella insurance to their current policy. It’s commonly thought that people with more personal assets are of greater risk of being sued. However, if you were to rear-end a luxury vehicle and were not able to cover the repairs or replacement cost with your current auto insurance policy, an umbrella insurance policy would more than likely cover the costs.
Most people find that umbrella insurance is less expensive than raising the liability coverages of your current insurance policies (homeowners, auto, etc.,) though those are viable options as well. The best option is to talk to your Mountain Lakes insurance agent and look at your options.
Here are a few things that umbrella insurance covers:
- Property damage liability
- Bodily injury liability
- Legal fees and defense