General insurance protects you and your assets from the financial risk of something going wrong.
It can’t stop something happening, but if something unexpected does happen that is covered by your policy it means you won’t have to pay the full cost of a loss.
Umbrella liability insurance is an extension of homeowner, renter, and auto insurance liability coverage that protects your assets from major claims and lawsuits. Once limits have been reached on your underlying liability coverage, an umbrella policy provides additional protection to safeguard your assets. Important to remember: Without an umbrella policy, the costs incurred after your homeowner, renter, or auto policies are depleted must be paid out of your pocket.
Much like the homeowner who was sued for the head injury that occurred in her backyard, you could also find yourself involved in a lawsuit one day. If you are involved in an accident, or if one happens on your property, the liability coverage from either your homeowners, auto or other insurance policy (depending on the type of accident) may kick in first, according to umbrella insurance carrier RLI. If the damages exceed what your base policy covers, your umbrella coverage can help you pay the rest of what you owe. Umbrella insurance can also provide your family with