Your auto, homeowners, renter’s, and boat insurance all include liability coverage, which covers the damages if you cause an accident. However, if the other party’s losses exceed the limits of your policy, you might be left paying the difference out of your own pocket, which could cost you everything you own. In these situations, umbrella insurance can be a lifesaver, protecting your home, your retirement, and the life you’ve built from lawsuits.

Answers to Common Questions About Umbrella Insurance

What is umbrella insurance?

Think of umbrella insurance as backup liability coverage that extends to all of your other policies. If the damages of an accident exceed the limits of your auto, home, or business insurance, your umbrella policy will kick in to cover the rest.

What does umbrella insurance cover?

Umbrella insurance covers the difference between someone else’s losses and the liability limits of your other policies. For instance, if you cause an auto accident resulting in $100,000 in damages, but only have $50,000 in auto liability coverage, your umbrella insurance will pay the remaining $50,000.

What happens if I don’t have umbrella insurance?

Without an umbrella policy, you could be held personally responsible for any damages that exceed your liability coverage limits. In the example above, the other driver would be able to sue you for their losses, possibly taking your house, your retirement fund, and all your other assets.

Is umbrella insurance expensive?

Insurance companies understand that major accidents that exceed liability limits are rare, so premiums typically reflect the lower risk. Many people can get up to a million dollars in coverage for just a few hundred dollars per year.

Insurance provides peace of mind, so it’s important to find a policy specifically tailored to your unique needs. For over a century, Somers Agency has helped clients throughout Ohio’s Lorain County protect what matters most by comparing options from a variety of carriers and helping you make the right choice. Visit their website to learn more about umbrella insurance, get more tips and insight on Twitter, or call (440) 324-3447 to speak with an agent and request a free quote.