Umbrella insurance might be a new term to many people who are only familiar with the basic types of insurance like life, auto, renters, and homeowners. Here is an overview of umbrella insurance that can help you better understand what it is so you can purchase it if you decide it might be beneficial.
What is Umbrella Insurance?
Also known as excess liability insurance, umbrella insurance is coverage that pays once a primary insurance plan’s limits have been reached. Umbrella insurance provides excess coverage for auto, home, and other types of insurance. For instance, if you have been sued because a newspaper delivery person slipped on your icy porch and broke their leg, then their medical bills could quickly add up costly. If their medical bills were expensive and their homeowner’s insurance was maxed out, yet there was still a balance owed, umbrella insurance would kick in and pay that money that the primary insurance didn’t pay.
What Happens to Excess Without Umbrella Insurance?
Without umbrella insurance, if someone ever sues you for whatever reason and your regular insurance has paid the maximum amount to the victim, you’re responsible for the excess out of pocket. Since this could end up causing great financial strain, it’s always essential to have an umbrella insurance plan to accompany your other primary types of insurance, just in case. Umbrella insurance usually doesn’t cost much extra, and it can be very beneficial in case you’re ever sued and even under other circumstances.
As you can see, umbrella insurance can be very useful. If you’re a Tampa, FL resident, and you’re considering choosing another insurance agency, Morgan Insurance Services is available to provide you with high-quality coverage. We offer umbrella insurance and any other type of coverage you might need. Give us a call or visit our office in Tampa, FL for a quote today.