Umbrella Coverage

Umbrella insurance coverage is a type of liability insurance that protects you beyond the limits of most other types of insurance. An umbrella insurance policy takes over when your other policies hit or exceed their limits of coverage. In the event that all of your insurance policies exceed their limits, umbrella coverage can protect your assets such as your home, cars, and retirement funds. While most policies cover you for one specific type of coverage such as auto insurance, life insurance, or homeowners insurance, umbrella coverage is a single policy with coverage that extends beyond other policy limits. Umbrella coverage covers most of your financial life and takes care of the extra costs in case you exceed the limits on other policies. Umbrella coverage can be thought of in a literal sense, too—just as an umbrella covers your entire body in a rainstorm, umbrella coverage covers all of your financial needs when your liability limits are exceeded.

Umbrella coverage still has differences within its coverage for each individual person. When determining how much coverage is appropriate for you, it is important to consider what your individual needs are and which policy can best suit your lifestyle.

Areas that umbrella insurance covers include:

Bodily Injury: An umbrella policy will cover the expense of medical bills that exceed the limits of your other policies. Whether it is medical bills for yourself, or for others harmed in incidents caused by you, umbrella coverage will cover the damages beyond what your other policies will not cover.

Property Damage: If you need coverage for damage to property that your auto or homeowners insurance does not cover, umbrella insurance can protect you.

Legal Damages: An umbrella insurance coverage can cover you from libel, slander, suits for false arrest, malicious prosecution, privacy violations, and other civil charges.

Legal Fees: Umbrella coverage can help you afford legal fees, court costs, and a good lawyer in case of a lawsuit. (MoneyCrashers).

It is recommended that most people have a $1 million dollar umbrella insurance policy and those that earn over $100,000 per year should have additional umbrella coverage (Kiplinger). Umbrella insurance policies cover you beyond your other policies and add an extra layer of protection. Although it is never assumed or expected that you will exceed the coverage of your other policies, umbrella coverage protects you in the case of an unfortunate accident, unusual situation, or unforeseen circumstance. Umbrella coverage protects you, your assets, and your peace of mind. Contact THW Insurance today to discuss which types of coverage are best for you.