What is Umbrella Insurance?

Primary insurance policies have coverage limits. If financial loss or liability goes beyond these limits, the rest of the bill is left to you. Umbrella insurance is a type of secondary coverage that offers coverage after you have reached the coverage limits on your primary policy. You’ll find umbrella insurance, along with primary policies, at Redden Insurance Agency in Bradley, WV.

 How Umbrella Insurance Works

Umbrella insurance is also known as catastrophic coverage. Most types of insurance cover your property or your liability related to that property, like home and auto coverage. Umbrella policies cover your liability once these primary policies have been exceeded. Primary policies are designed with coverage limits that will be sufficient in most situations. However, they fall short when the unforeseen happens and damages or liability exceed what is considered common. 

For example, if you hit a Lamborghini, the damage costs could far exceed your auto coverage limit because the expense is greater than average. If someone is injured on your property and unable to work for the rest of their lives, the liability settlement will likely be more than is covered by your average homeowner’s policy.  

What Does Umbrella Insurance Cover?

Umbrella insurance may cover specific situations not covered by your primary policy. For example, umbrella insurance may cover libel and slander, which isn’t covered by your homeowner’s policy. Umbrella insurance normally covers bodily injury, personal injury, property damage, and landlord liability. It will not cover your personal belongings, business losses, or judgments that are the result of criminal activity.

At Redden Insurance Agency, we understand that umbrella insurance isn’t just for the rich and famous. It helps to protect your assets and future earnings, regardless of your financial status. Stop by our Bradley WV office and speak with an agent to see if umbrella insurance is a good choice for you.