How Does Umbrella Insurance Work?

Your top priority is always to protect your family, property, and yourself. That is why you need different types of insurance. However, unfortunately, insurance does not always cover everything because it has its own limits. For this reason, you may want to get umbrella insurance – a type of insurance that adds extra liability coverage above other standard insurance policies, such as home and auto insurance for example. 

How Does Umbrella Insurance Work? 

Your personal umbrella insurance policy can expand your liability coverage in two ways. Most umbrella insurance policies increase liability coverage to $1 million or even more and also add new covered claims, including defamation, libel, and slander. 

If you are found liable in a lawsuit, your home, auto, or boat/watercraft policy will be able to cover damages up to a certain limit only. Once you exhaust the limit of your policies, you will have to pay the rest out of pocket. However, if you have umbrella insurance, it will kick in and cover the expenses. This is how umbrella insurance can protect you from serious financial losses.

It is important to remember though that it does not cover everything. For example, it will not cover your bodily injuries, damages to your personal property, intentional or criminal action, and claim that are not included in the underlying policy. 

Manzanita Insurance Serving Clients In Prescott, AZ – We Will Help You Find A Coverage You Need

If you live in Prescott, AZ or any other nearby town, and you are looking for proper insurance to protect yourself and your family, contact Manzanita Insurance. We provide a variety of quality insurance services, and we do our best to help our clients find an insurance policy they need based on their personal insurance needs and budget. Feel free to contact us if you have any questions or need more information about insurance policies available.