Umbrella Insurance: Comprehensive Coverage for Catastrophic Events

Umbrella insurance is designed to cover catastrophic events beyond the coverage limits of your primary auto or homeowner’s policy. At Richard Zeises Agency, based in Jenkintown, PA, we are here to explain who should consider umbrella insurance and why it’s worth it.

How Does Umbrella Insurance Work?

Umbrella insurance covers liabilities that exceed the limits of your primary policies. For instance, a 10-car pile-up for which you are responsible could easily incur costs of $500,000 or more. However, most policies have coverage limits as low as $50,000 for injury expenses and $25,000 for property damage. This huge coverage gap would have to be paid out of pocket unless you have umbrella insurance.

Primary Policies are Pre-Requisite

Generally, before you can get an umbrella policy, you need to have a standard homeowner’s and auto policy. You may need to have the maximum coverage limits available on these policies, as this reduces the likelihood that you will need an umbrella policy.

When You Have Assets That Exceed Coverage Limits

Imagine you have a net worth of $1 million, but your auto liability has a $500,000 coverage limit. A liability judgment against you could put your assets in jeopardy. An umbrella policy will cover the difference between what your standard policy covers and your overall liability.

Concerned about Your Financial Future?

Even if you don’t have assets that exceed your coverage limits, an umbrella policy can still be a good idea. A judgment can also include your future earnings, meaning you could end up paying years later, thereby jeopardizing your financial future.

Peace of Mind with Umbrella Insurance

An umbrella policy can offer you peace of mind. It covers the claims that exceed the limit of your primary policy, but it also covers some situations not covered by your standard policy. To know more about how an umbrella insurance policy can protect you, contact the team at Richard Zeises Agency in Jenkintown, PA. We’re here to help with all your insurance needs.