Who should have umbrella insurance?

Umbrella insurance is the most misunderstood type of insurance. Many people have no idea what it is, what it does, and why they should have it. When it comes to who should have umbrella insurance, the answer is just about anyone. It provides an extra layer of liability protection that offers the peace of mind everyone wants. At Capital Insurance in Spokane, WA, we are a local independent agency with 18 years of experience providing exceptional service to our customers. 

Umbrella insurance is excess liability coverage. Picture a big red umbrella, you are underneath it all dry and protected from the storm going on around you. You represent your assets and the umbrella is your umbrella insurance. It offers the protection you need to weather the financial risks that surround you. 

Umbrella insurance is not a standalone policy. It is an extra layer of liability protection. It must be added to a policy that you already have with liability coverage. Some potential policies are home, auto, boat, motorcycle, motorhome, condo, and renters. The good news is that if you get the primary policy from the same carrier as the umbrella policy, you may be eligible for a multi-policy discount. 

How an umbrella policy works is that if you need to use your liability insurance when you get to the maximum of your coverage, your umbrella policy will kick in and cover you to the maximum limit on that policy. While your primary policy may cover a few hundred thousand dollars, most umbrella policies begin at one million dollars and go up to about five million. If you have assets like a home or savings, you owe it to yourself to make sure that you protect them from a judgment that could cause you to lose them. 

If you want to learn more about umbrella insurance, contact Capital insurance in Spokane, WA.