How Does an Umbrella Policy Work?

Umbrella policies in Harrisburg, PA kick in once you have maxed out coverage on your homeowners or auto insurance policy. You can’t just have an umbrella policy without first have primary coverage.

If you get into a car accident, the medical bills and costs to repair the property that was damaged could exceed your insurance on its own. For example, if multiple people are injured and your auto insurance only covers $500,000 between bodily injury and property damage, but actual costs are $1 million, the umbrella insurance will help pay for the rest. This way, you don’t have to go into your savings and other assets to pay the rest of it. The more assets you have, the more you are at risk for losing them, which demonstrates the need for umbrella insurance.

Many umbrella policies start at $1 million in Harrisburg, PA. You may be thinking that you can just increase the coverage on your auto and homeowners insurance and not worry about this type of policy. However, it can be cheaper to get an umbrella policy, instead of increasing coverage limits, and some auto and homeowner policies may max out at a certain level. In addition, an umbrella policy can provide some extended coverage such as for slander, libel, false arrest, or wrongful eviction. It also includes lawyer fees if you have to defend yourself.

Even though umbrella policies cover a multitude of things, it’s important to remember that they don’t cover everything. Check with an agent at Henderson Insurance Agency for any questions regarding coverage. Any damages that are expected or intended by the insured won’t be covered. Certain exotic vehicles, such as jet skis and aircraft, and associated damages caused, are not covered. Any damages to your own property are also not covered. Depending on how the damages were caused, they may be covered under the homeowner’s policy, but the umbrella policy will not kick in.

Contact Henderson Insurance Agency for a quote on umbrella insurance.