Many people are unsure what an Umbrella policy is or what it covers. PlatinumOne Insurance Agency is here to help. We will explain the basics of Umbrella Insurance and the benefits to you. When you are outside and there is a light rain or breeze you generally don’t need or want an umbrella. However, if it is pouring down rain with high winds, you take your umbrella. An Umbrella Insurance policy works much the same way.
There are generally two kinds of insurance terms used relating to this kind of coverage:
- The first is typically called an excess liability policy. This policy does nothing to change the terms of your other insurance policies – it simply raises the limit of liability you have available for a claim. Think of this policy as dollars held in reserve if a claim exceeds the limits you currently have available. This is the most common coverage offered.
- A second option is an umbrella policy. Most umbrella policies function as an excess liability policy. However, in addition to acting as a reserve, the umbrella provides additional coverage for types of losses that otherwise would not be paid under the primary coverage.
Umbrella Insurance provides extra protection or limits above the liability insurance you currently have. Just as an umbrella protects you from heavy rain, an Umbrella Insurance policy protects you from losing the entirety of your wealth and assets in the event of a claim. Umbrella Insurance can provide limits above your personal auto and home policies.
Here is an example: John Doe falls asleep while driving and hits a van with a family inside. The accident results in $600,000 of medical bills, but John Doe’s auto policy has a $500,000 limit. Fortunately, John Doe also has a $500,000 umbrella policy, and the additional $100,000 would be covered under the Umbrella.
It is true that Umbrella Insurance may not be for everyone, but if you are building financial resources for your future, are a professional, own your home, boat or recreation vehicle, you should consider an Umbrella Insurance policy. PlatinumOne Insurance Agency offers Umbrella Insurance with very competitive rates. Having the added protection of an Umbrella Insurance policy is coverage no one should go without.
As a leading Kansas City Independent Agency, we offer a broad selection of insurance policies, companies and financial services. We are licensed in Kansas, Missouri and Nebraska and are not limited to placing your insurance with just one carrier.