How Do Umbrella Insurance Policies Work?

The main purpose of any type of insurance is to protect a policyholder’s valuable assets and loved ones, however, sometimes, these policies have certain limitations. Fortunately, there are additional coverage options, known as umbrella policies, that you can add to help increase your protection and add another level of security. If you are in the San Diego, California area, and have questions about your insurance coverage, Windfall Insurance Services Inc. can help. Read on to learn more about how umbrella insurance policies work to ensure that you are fully covered in the event of an unfortunate occurrence that causes damage or loss.

Umbrella Insurance: Basic Information

The purpose of an umbrella insurance policy is to provide additional financial protection that goes beyond the existing coverage of other insurance policies that have already been purchased by a policyholder. It can typically cover insurance coverage for certain lawsuits and liability issues, coverage for injuries, and property damage. Many types of insurance, including homeowners, auto, and boat policies, have certain limitations to what they will cover in the event of loss or damages. An umbrella policy will provide coverage to what is not covered by the original policy. Another crucial component of umbrella insurance is that it will provide additional liability coverage that also may not be covered by original insurance, such as rental property liability, slander, libel, and false arrest. It is important to note that umbrella policies typically do not cover liability that is assumed under a contract signed by the policyholder, a policyholder causing intentional damage to another party, or injuries or damages to a policyholder’s personal property.

Is An Umbrella Insurance Policy Right For You?

Many policyholders may not even realize that their insurance policies have limitations that do not fully protect them in certain situations. Therefore, umbrella policies can be advantageous because unfortunately, everyone is at risk for high cost accidents. An umbrella policy will ensure that as a policyholder, you will not be held financially responsible for out of pocket expenses for someone else’s medical or legal bills if you are found to be at fault. If the total value of your assets is more than the limits of your homeowners or auto insurance policies, it is advisable to purchase a supplemental umbrella policy. Essentially, a policyholder will want to have adequate liability insurance to totally cover their assets so that they are not lost in the event of a lawsuit. Umbrella insurance coverage will help give a policyholder peace of mind that they are financially covered if they get sued, which unfortunately can happen due to potential everyday risks.

Getting Assistance With Umbrella Insurance Coverage

Having the appropriate umbrella insurance coverage can help guarantee financial protection in the event of any unfortunate unforeseen circumstances. If you want to explore your insurance options in San Diego, California, contact Windfall Insurance Services Inc. for a consultation.