It is highly recommended that those who have assets to protect purchase an umbrella policy for their already existing plans. However, what we at Alliance General Insurance Agency, serving the greater Denver, CO area, have learned is that most people do not understand what an umbrella insurance policy is and what the benefits are to one. Here is more information on this topic.
What Is An Umbrella Policy?
An umbrella policy is a policy that kicks in with extra coverage in case you have exhausted the maximum amounts set by your current insurance policies. As such, if you are involved in a catastrophic auto accident, and your insurance has paid out the maximum amounts, the umbrella policy will kick in, sort of like a rainy day, emergency fund.
What are the Benefits of an Umbrella Insurance Policy?
The most significant benefit to an umbrella insurance policy is that it protects you in the event that you go over the maximums of your current home and auto insurance policies. In most cases, this occurs because of litigation. If someone sues you because of a car accident or because they were injured on your property, the costs can quickly surpass your policy limits. If they win and your policy has been exhausted, they can come after you for the money that is owed, which can financially ruin you. This type of policy helps to protect you against this happening.
If you do not yet have an umbrella insurance policy, now is as good a time as any to purchase one. At Alliance General Insurance Agency, serving the greater Denver, CO area, we would love to provide you with the coverage you need. Call us today to schedule an appointment to sit down with one of our agents and discuss your insurance needs.