Umbrella insurance provides additional coverage above your existing insurance policies. It helps you in the case of lawsuits and claims that can destroy you financially. If your existing liability coverage is not enough, then umbrella coverage will help pick up the slack.
How Additional Liability Works
This form of coverage supplements your existing policies by increasing your coverage. An umbrella policy helps protect your personal assets when you are facing a lawsuit. If you are liable for a claim and need to pay damages, your home or auto policy will pay up to its limits. The umbrella policy helps you when your existing coverage is not enough. What it does is keep you from having to pay out of pocket for the remaining expenses.
The policy covers things such as physical injury, personal injury, property damage, and landlord liability. This type of policy only activates when your existing liability coverage is depleted.
The policies are usually sold in $1 million increments. Speak with an insurance agent to see how much coverage is right for you. You might even discover that you currently have sufficient liability for any problems you might face. Just keep in mind that you cannot buy this insurance if you are already facing a potential lawsuit. You must have it in place before an incident occurs.