Many insurance companies offer what is known as “umbrella” insurance coverage. This can come in different forms, and provide different benefits, depending on the particular insurance company. But typically this is insurance coverage that will provide you with added liability protection, and added medical insurance coverage, regardless of whether there is an injury caused by a motor-vehicle collision or an injury that happens on your premises.
You probably have automobile insurance and, if you are a homeowner, homeowner’s insurance. Each of these policies provides a certain amount of insurance coverage protection to you in the event that you cause an injury with your vehicle, or if someone is injured while on your property. Rather than increasing the amount of coverage protection for both policies, it is usually much cheaper to purchase a single umbrella insurance policy that will provide increased coverage protection no matter how or where the injury occurred.
You may be thinking “I’m very careful, and do not believe I would ever cause an injury, much less an injury that would cost more than the coverage limits I already have.” This may be true, but an umbrella policy can also protect you in the event that you are injured by someone who is uninsured, or whose insurance coverage limits are too low to fully compensate you for your injuries.
You should already have “uninsured/underinsured” coverage on your auto policy that protects you if you are injured by someone who is uninsured, or whose coverage limits are too low. But what if the cost of your medical treatment, or the value of your injuries and lost wages are more than your uninsured/underinsured coverage limits? In many cases, your added coverage available under an umbrella insurance policy will increase the amount of coverage available to you in the event you are injured by a motorist with no insurance, or with too little insurance.
Talk to your insurance agent about whether an umbrella policy is right for you. It can be the cheapest way to protect you and your loved ones in the event of a catastrophic injury.