What is umbrella insurance and why do I need it

Life can get stormy, it isn’t always blue skies and sunshine. When those storms arise having an umbrella can come in very handy. There is a good reason a well-known insurance carrier has an umbrella as its logo. An umbrella represents protection and that is what umbrella insurance offers. However, all insurance offers protection of one sort or another and most people have no idea exactly the kind of protection an umbrella policy offers and why they need it. At M8 Insurance in Salt Lake City, UT, we aim to give all of our customers the finest service possible while providing access to a great selection of carriers. 

The most basic definition of umbrella insurance is that its excess liability. It is not the only type of excess liability but it is a very valuable one. The difference is umbrella insurance can cover somethings that the primary policy doesn’t cover while straight excess liability can’t. Umbrella insurance is unique, it is not a policy you can buy unless you already have a policy with liability coverage. This includes but is not limited to home and auto insurance. Now that you know what umbrella insurance is why do you need it? 

Liability insurance protects your assets. If you are found legally responsible, judgment can be leveled against you. The judgment will be paid initially by your primary policy and if the amount is higher than the amount of your coverage limit, you are responsible for the remaining amount. If you don’t have umbrella insurance, it will come out of your pocket. If you do have the coverage, then your umbrella will take over and pay to the limit of coverage you have. 

Having an umbrella policy offers peace of mind that your hard-earned assets are safe. Give the office of M8 Insurance in Salt Lake City, UT a call to set up an appointment to discuss why umbrella insurance is right for you.