An umbrella insurance policy offers additional liability coverage beyond the limits of your standard policy. Most people purchase this kind of insurance to augment their existing home or auto coverage. Since umbrella policies are not as common as standard policies, many misconceptions surround them. The following guide debunks some of these popular myths.

What Are Some Misunderstandings About Umbrella Insurance?

1. It's a Requirement if You Have Auto Insurance

While it's true that your standard policy does have some liability protection, it's not as expansive as the security that an umbrella policy offers. For instance, if you cause a car accident that results in the serious injury of another motorist, they can sue you for damages. If you only carry the minimum coverage of $25,000, that may not be enough to cover the damages the victim is seeking. Fortunately, an umbrella plan helps cover the gap once your regular auto insurance policy maxes out.

2. It Covers Everything

An umbrella policy is not a solution for all problems. It is a secondary policy that protects you from financial loss if you are sued for liability because of a covered incident. It does not take the place of regular home, auto, or another kind of insurance coverage. With that in mind, umbrella plans do tend to cover a wide range of liability incidents, so you can feel confident that you will have comprehensive protections in place.

3. It's Only Necessary if You Have Valuable Assets

The value of the policyholder's assets has little to do with an umbrella policy. Everything that a person owns has some amount of value, and unexpected events can happen to anyone. Umbrella plans ensure you have the financial resources to retain assets and defend yourself against litigation.

If you need an inclusive umbrella insurance policy, turn to Chanler Agency, Inc. Insurance in Geneseo and Livonia, NY. Since 1973, this reliable business has served customers throughout the Finger Lake region. Their team of agents will help you find the perfect plan that meets your budget and needs. Call (585) 243-5520 for the Geneseo office or (585) 346-3118 for the Livonia office to learn more about their available policies. You can also visit their website to request a quote.