How Does Umbrella Insurance Protect Someone?

Have you ever heard of umbrella insurance? Have you ever thought about what it covers? Well, umbrella insurance is the extra liability protection that comes to your rescue when your typical coverages are exhausted. Think of umbrella insurance as a safety net that picks over from where your boat, home, or auto insurance leaves off. 

Need to learn more about how umbrella insurance protects you? Hang on as Wise Insurance Agency of Ft. Wayne, IN, helps you understand more about this insurance coverage. 

What does umbrella insurance cover?

Perhaps, because of its name, “umbrella,” many people think that umbrella insurance covers you against all perils. While umbrella insurance can save you on a rainy day, it’s liability coverage that protects you from liability claims made against you by other people. 

Here are the typical areas covered by umbrella insurance:

  • Property damage: Assume that you are involved in a severe auto accident. While your auto insurance may help cover damages caused to the other motorist’s vehicle, it can only do so much if the accident was severe involving an expensive car. Thankfully, umbrella insurance kicks in when the coverage limits of your current coverages run out.
  • Bodily injury: While home insurance may cover minor injuries to your guests, things can get thick when third parties sustain severe injuries while within your premises. For instance, if a guest falls off your balcony, medical expenses can be extensive. And since your home insurance can’t cover the entire medical costs, umbrella insurance can bail you out.
  • Personal liabilities: The beauty of umbrella insurance is that it protects you against personal liabilities like false arrest, libel, and slander that you won’t get coverage from other liability coverages.

Would you like to obtain an extra layer of liability protection in Ft. Wayne, IN and its environs? Please contact Wise Insurance Agency for a competitive umbrella insurance quote.

Why Do You Need Umbrella Insurance?

Insurance Coverage Types

There are many, many types of insurance, but most people only need a few. Auto and homeowners’ insurance are common for the population, but there can be problems with these. They don’t tend to offer much liability coverage for the insured. That’s where umbrella insurance comes in to fill the gap. If you are interested in an umbrella insurance policy, contact us at Wise Insurance Agency in Ft. Wayne, IN to talk to an agent about this coverage.

Auto and Home Liability

An umbrella policy is generally not a stand-alone policy. It is taken out after your home, and auto insurance policies are in place. Because it can be so expensive to raise your liability coverage with those policies, many people go with the bare minimum liability coverage. It may mean lower rates, but it often means that a single accident or calamity can bankrupt a person when they are found at fault and must pay medical bills and other expenses. 

Umbrella Insurance

Because of the low liability amounts on those policies, many people choose to up their insurance coverage with an umbrella policy. This adds another layer to the liability insurance of both the home and auto policies. Once the home or auto insurance has paid out its maximum amount, the umbrella policy pays out up to its maximum coverage. This gives you many times more liability coverage, and it can protect your financial future should there be a serious occurrence that you are liable for. 

Get Your Umbrella Policy

If you’re interested in getting an umbrella policy to boost your liability coverage, call us at Wise Insurance Agency in Ft. Wayne, IN for an appointment to discuss it with an agent.