Though not as commonly discussed as other insurance types, umbrella insurance carries immense value. It shields your assets in the event of a significant claim that exhausts your primary insurance. Here’s a closer look at what it offers and how it works.
Umbrella Insurance Explained
Also known as "excess" insurance, umbrella insurance is used when you’re at fault in an incident that leads to injury or property damage. If the ensuing claim exceeds what your auto, homeowners, or other primary insurance can cover, umbrella insurance steps in to cover the outstanding balance, eliminating any out-of-pocket expenses.
How Umbrella Insurance Works
After filing your primary insurance claim, your umbrella insurer is also notified. If there’s a remaining balance after your primary insurance has been exhausted, umbrella insurance readily covers it. While it is critical for those in higher income brackets with substantial assets, umbrella insurance should be considered by everyone. It protects you from potential bankruptcy following a lawsuit.
Benefit from Umbrella Insurance’s Protective Layer
Umbrella insurance can be the difference between retaining your assets or facing bankruptcy in a lawsuit situation. If you’re seeking a reliable insurance provider in the Tuscaloosa, AL, area, we at Baldo-Downs Insurance LLC are here to help. We’ve been providing comprehensive coverage for many years in the area and beyond. Contact us today for a customized quote that fulfills your needs.
