You never know what life is going to throw your way. And even though you can plan as much as you want, there are many times in life that our plans go out the window. When the unexpected takes place, having the right type of insurance coverage can be the difference between being completely stressed and financially strapped and the ability to stay afloat. For now, let’s take a quick look at umbrella insurance.
To understand umbrella insurance, let’s look at an example. Let’s say you were involved in an accident and it was concluded that the accident was your fault. Would the insurance policy that you have cover all of your losses and incurred expenses? With an umbrella insurance policy, you will receive additional coverage, but only once your existing limits are exhausted.
Let’s say you have an auto policy with a liability limit of $500,000. You are involved in an accident, though, and the total cost to cover everything is $750,000. This means you will be left with $250,000 to come up with to pay for the damages and medical expenses. With an umbrella policy, you can receive the compensation you need once your auto policy has been exhausted. Please note that an umbrella coverage does not increase the amount your existing policies will pay out. Instead, it expands your coverage by providing you with another outlet for covering your expenses. This type of policy is very valuable.
If you would like more information about umbrella insurance and whether or not you should invest in it, please contact Front Range Insurance Services serving the Littleton, CO area.