How Does Umbrella Insurance Work?

Umbrella insurance provides catastrophic coverage that can save you from financial disaster. At StraightEdge Insurance Agency in Georgetown, TX, we offer the umbrella insurance you need to protect your financial stability and future. 

What is Umbrella Insurance?

Umbrella insurance is a type of personal insurance policy. Instead of covering your house or vehicle, it covers you. It requires you to have primary insurance policies in place. if a claim exceeds your primary insurance policy, the umbrella policy will pay the difference, up to its own coverage limit. Umbrella insurance is sold in increments of $1 million, so the coverage limits are much higher than most primary policies. In some cases, an umbrella policy may cover all the costs for claims that are excluded by the primary policy. 

How Does it Work?

Umbrella insurance is relatively inexpensive while offering $1 million in coverage or more. How does this work? Because it typically covers catastrophic claims, the policy isn’t required to pay out nearly as often as primary policies. This allows them to provide coverage at reasonable rates. The odds that you will ever file a claim under an umbrella policy are slim. However, if you do need to file a claim, you will be very glad you have it. 

Not Just for the Rich

There’s a misconception that umbrella policies are for affluent individuals with millions in assets or cash. If you have $1 million in assets or more, you absolutely need an umbrella policy. However, even the average person can benefit from an umbrella policy. Litigation is very common, and judgments can quickly exceed your primary policy limits. In addition to seizing any assets you do have, the court can garnish your future wages. 

Umbrella insurance is very important in today’s society. A judgment against you can affect you financially for the rest of your life if you don’t have the right coverage. Contact StraightEdge Insurance Agency in Georgetown, TX today to discuss the umbrella policy that works best for you.