What is an Umbrella Insurance Policy? 

Owning a home or business comes with a significant number of risks. While homeowners and business insurance can provide essential financial protection, umbrella insurance offers an additional layer of coverage worth considering.

What is Umbrella Insurance?

Umbrella insurance is an additional layer of liability coverage designed to extend the limits of existing policies. When the liability limits of a primary policy, such as auto, homeowners or general liability insurance, are reached, umbrella insurance can help cover the remaining costs. This type of coverage is especially beneficial in the event of large claims or lawsuits that could otherwise put a financial strain on the policyholder. Whether for personal or business protection, umbrella insurance helps fill critical gaps in liability.

Benefits of Umbrella Insurance

The following are some of the benefits of umbrella insurance:

• Broad protection—Umbrella insurance is unique because it can help in a wide range of situations. It can help cover liabilities for car accidents, third-party injuries that occur on your property and even claims of libel or slander.

• Cost-effective benefits—Despite its wide-reaching benefits, umbrella insurance is typically an affordable way to add extra financial protection to a policy.

• Protection against lawsuits—Umbrella insurance can help pay for legal fees, court settlements and judgments that exceed the limits of primary policies.

Keep in mind that umbrella insurance doesn’t cover every possible scenario. That’s why reviewing your policies with a qualified insurance professional is important. They can help you understand the scope of your umbrella coverage and recommend adjustments, such as increasing the limits on your underlying policies for added financial protection.

Learn More

For umbrella insurance near you, contact SunStar Insurance of AR.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.