Umbrella insurance is often misunderstood by many. This insurance steps in after policy maximums have been met for homeowners, auto, or watercraft policy coverage. In other words, this insurance covers what your other insurance policies don’t. However, several things must be understood to figure out who is best served by this type of insurance and how it works.
How Does it Work?
Umbrella insurance isn’t difficult to understand. This insurance covers/pays once you have used up or reached the maximum liability limits of your insurance policy. It may also cover things that aren’t covered at all in your insurance policy. Your primary insurance company will pay the maximum amount according to your policy coverage. However, it should be noted that umbrella insurance won’t pay for your expenses or anything that isn’t part of your coverage. It also won’t cover any exclusions listed in your policy. It is designed to kick in once your policy has reached its maximum limit, and more coverage is needed. At Tackett Insurance, Inc., we understand that this type of insurance is not recognized by many. This is one of the many reasons why we are dedicated to helping Memphis, TN residents who might benefit, learn the ABC’s of this type of insurance. This insurance covers a wide variety of different things. It can be beneficial by protecting you in bodily injury and property damage liability claims, in addition to slander, legal fees, and false arrest.
Most people who invest in umbrella insurance opt to have, at the least, a million-dollar policy, even if the assets they own are less than a million in value. This level of coverage can cover many unforeseen situations and circumstances. Think of umbrella insurance as additional liability coverage when damages or other situations max out your primary insurance limits. This insurance steps in to cover the rest.
In short, umbrella insurance helps cover any financial responsibility due to an injury or loss to someone else and supplements other policy coverages. We take pride in educating people. Your win is our win. Give Tackett Insurance, Inc. a call.