Umbrella insurance is a less common but necessary type of insurance. It works like an umbrella, ensuring you’re covered during extreme situations when your liability insurance doesn’t cover damage. There are several ways umbrella insurance can help you.
How Does Umbrella Insurance Work?
Umbrella insurance is designed to kick in when your other insurance is maxed out. For example, imagine you’re in a car accident in Nettleton, MS, or the surrounding area. Still, your auto insurance doesn’t cover the total cost of damages to the other person’s vehicle because the damages exceed the insurance limitations. In this scenario, umbrella insurance will kick in and cover the portion of damages that your car insurance will not.
Other Things Covered By Umbrella Insurance
Umbrella insurance through Sprout Insurance can also help cover medical expenses if someone’s hurt on your property and your homeowner’s insurance won’t cover the costs. It typically covers them if the damages exceed your homeowner’s insurance limitations.
This type of insurance is well-known for covering costs during legal battles, such as defamation lawsuits. It can help pay for a legal defense and may also pay a portion of a judgment against you if you lose. However, there are limits to insurance coverage.
Things Not Covered By Umbrella Insurance
Umbrella insurance will not reimburse you for assets lost. It is designed to cover costs in situations where you are unintentionally liable. For example, if you get in a car accident or someone is injured on your property. The umbrella insurance may help pay for the other person’s injuries or property damage, but it won’t cover yours. Instead, you’ll have to pay for your assets yourself.
Understanding what’s covered by umbrella insurance and deciding whether you need it can be tricky. Contact agents at Sprout Insurance to get answers to your questions. We’re currently serving the Nettleton, MS area.
