What is Umbrella Insurance?

Umbrella insurance provides extra coverage to supplement your basic policies. It’s often called catastrophic insurance. If you have a claim that exceeds your standard policy limits, umbrella insurance will cover the difference. At Giles & Iten Insurance in Surprise, AZ, we offer umbrella insurance in addition to standard policies. 

What is Umbrella Insurance?

Umbrella insurance is a type of personal liability insurance. It’s usually sold in increments of $1 million dollars up to $5-10 million. The policy typically covers everyone in your household. 

Examples of Umbrella Insurance Claims

One example of an umbrella claim is a car accident involving several other vehicles. You are found liable, and the costs of the accident exceed your auto policy coverage limits. The umbrella policy would pay what your auto policy doesn’t cover. 

Another example is your child getting into a fight at school and injuring the other child. Her parents sue you for medical expenses and potentially pain and suffering. This wouldn’t be covered under your standard auto or home policy, but it would be covered under an umbrella policy. 

Umbrella Insurance Isn’t Only for the Wealthy

Umbrella insurance may seem unnecessary if you don’t have $1 million in assets. However, if you are sued, you could lose more than your current possessions. Your assets could be seized and your future wages could be garnished. Umbrella insurance can help prevent a financial catastrophe that would be difficult to recover from. 

Umbrella Insurance Requirements

Umbrella policies require you to have homeowner’s and auto insurance policies. The coverage limits required will vary based on the insurer. You must meet the minimum requirements for coverage limits for your home and auto policies to purchase umbrella insurance because umbrella insurance only pays when you reach the coverage limits on your primary policy. 

Umbrella Insurance at Giles & Iten Insurance

In today’s world, it makes sense to have an umbrella policy. Liability claims can easily exceed coverage limits, leaving you to pay the difference out of pocket. If you are looking for umbrella insurance in Surprise, AZ, contact Giles & Iten Insurance today.