July 12, 2013

Umbrella Policy: What is it and why do I need it?

An umbrella policy is a liability insurance policy that can offer you protection and peace of mind. Most of us have insurance on our homes and automobiles, but what if you are liable for damages beyond the limits of these policies? That is where an umbrella policy can help.

What is an umbrella policy?

An umbrella policy can offer you coverage above and beyond the limits of your other insurance policies and compensate for any holes in coverage. The limits of an umbrella policy usually far exceed the limits of a typical home or automobile insurance policy.

Why do I need it?

Umbrella policy limits are high for a reason. If you are liable for catastrophic damages in excess of your other policy limits, you could be on the hook for not only the value of your current assets, but also your future earnings. Many clients are not aware that their wages could be garnished in order to satisfy a judgment against them. An umbrella policy can also help to cover defense costs in a lawsuit.

The Brewer-Lloyd Insurance Group can help you decide if an umbrella policy is right for you. Visit us in our Mesa, AZ office or contact us today.