Do You Really Understand Umbrella Insurance?

You may have heard of umbrella insurance, but you may be unsure of exactly what it is. Here are a few basic points to get you started from Wayne Realty & Insurance Co. Inc. in Goldsboro, NC.

What is Umbrella Insurance?

Umbrella insurance is an add on to your current insurance policies. This type of add on is used in the events that you are held liable for something in amounts which exceed your current coverage. Umbrella insurance can cover any liability whether it deals with automobiles, homes, property, or businesses. 

Why Would I Need Umbrella Insurance?

Although most insurance policies attempt to plan for liabilities in a way that the customer would not need to spend money out of pocket, there are instances in which the amounts of the liabilities exceed the amount of the coverage. This happens in instances of severe auto accidents, severe accidents involving your home or property, or severe incidents involving your business. 

Umbrella insurance is most beneficial to individuals who are at risk of liability claims. This mostly includes individuals who have a large property, especially property on which events take place or in which large groups often gather, individuals who host gatherings, have pools, trampolines, or other recreational items that can cause injury or individuals who provide products or services to the public. 

It is important to note that even individuals who do not fall into these categories could benefit from umbrella insurance because any type of accident covered by your homeowner’s policy or auto policy could exceed the coverage amounts. When this happens, you would be responsible for the difference out of your own pocket. This could mean financial devastation for your family. 

If you would like to learn more about umbrella insurance, please contact one of our friendly staff at Wayne Realty & Insurance Co. Inc., serving Goldsboro, NC, and surrounding areas.