How Does Umbrella Insurance Really Work?

Accidents can happen to even the most conscientious, careful people, and insurance is a critical way for everyone should prepare for that possibility. But what if your primary policy isn’t enough to cover the associated costs?

That’s where umbrella insurance comes in. Much like that umbrella you keep in the back seat of your car in case of unexpected rain, an umbrella policy is there for you if your other policies aren’t enough.

If you’re in or near Oklahoma City, OK, and in the market for umbrella insurance, we at Vance Insurance Group LLC can help. In the meantime, here’s an overview of how umbrella insurance operates.

What Does Umbrella Insurance Cover?

Umbrella insurance is sometimes called “personal liability umbrella insurance” for a reason. Should you ever be responsible for damages exceeding the limits presented by other insurance policies – like your auto or homeowner’s insurance –umbrella insurance covers the overage.

Depending on the policy, umbrella insurance may also take care of additional fees associated with an incident – like legal fees. Some policies cover landlord liability, defamation suits, and more.

How Does Umbrella Insurance Work?

Umbrella insurance differs from other types of insurance in that it kicks in only if another of your policies fails to cover all costs related to an accident, suit, or other occurrence.

For example, if you’re in a car accident in Oklahoma City, OK that results in $300,000 in injuries and damage, but your car insurance can only cover half of that, you’d normally have to pay for the overage out of your own pocket. However, if you have umbrella insurance, that policy will kick in and cover you instead.

Keep in mind that standard umbrella insurance covers personal liability damages. It won’t cover your injuries and damages, nor will it cover liabilities related to your business. (There’s a special form of umbrella insurance for that.)

Ready to take the next step toward better protection? Contact us at Vance Insurance Group LLC today to speak with an experienced agent about your options.