What is an umbrella policy and why do I need one?

An umbrella policy is what it sounds like. It provides an additional layer of protection to your existing auto and property insurance policies. If you exceed the coverages provided by those policies, an umbrella policy will cover the lack.

For instance, if you were the cause of a car accident, your current coverage might not be adequate to cover the settlement. If your case were to go to court, you might have to pay an even heftier judgment. Without an umbrella policy, you could be placing your assets, including your car and your home and possibly your wages, at risk. With an umbrella policy, many of those things could be safeguarded.

If that sounds to good to be true, it really isn’t. Umbrella policies are not only for wealthy people; no, umbrella policies are for everyone. They can help anyone who owns an automobile, a home, or other investments or assets. If you own or have any of those things, an umbrella policy could be of benefit to you.

Umbrella policies are relatively inexpensive because they only come into play once your existing liability coverages have been exhausted. Their cost is determined by the amount of coverage your purchase as well as other factors, such as the number of properties you own and your driving record. Flor and Associates Insurance Agency can help you to review your existing coverages and those other factors in order to give you an estimate for an umbrella policy.

Do you have an umbrella policy? Why or why not?

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