What Is Umbrella Insurance?

When you have home and auto insurance policies, you can choose another type of policy to boost them both. An umbrella insurance policy helps you to have more coverage for each of them, and it’s a cost-effective way to add to your existing coverage. If you are interested in getting umbrella insurance, contact us today at TAS Insurance Agency in Phillipsburg, NJ.

Home and Auto Insurance Policies

The first step to getting umbrella insurance is to have a home and an auto policy for your home and vehicles. When you get these two insurance types, they each include a little bit of liability insurance in case of accidents. However, because those amounts of liability insurance are in small amounts, they may not cover everything after an accident. If someone has an accident in your home or with your car, you may be held liable for paying all of the medical bills that result. With an umbrella insurance policy, the amount left over can be paid by the policy instead of coming out of your wallet. 

How the Policy Works

Umbrella insurance is a secondary form of insurance that goes into effect when the first one has been exhausted. First, the initial home or auto insurance policy comes in to pay as much as it can toward the medical bills you owe. Then, when that has finished, your umbrella policy comes in to cover that overage. And, getting a high amount of umbrella insurance is highly cost-effective. Getting all of that extra liability coverage, and they all come with high maximums, comes at a small cost. It costs less to get one of these policies than it would add to both your home and auto insurance. 

Umbrella Coverage

If you have home and auto insurance and you’re interested in an umbrella policy, call us at TAS Insurance Agency in Phillipsburg, NJ.

What is Umbrella Insurance, and How Does it Protect Me?

You have heard about umbrella insurance, but do you know what it covers? Whether you have heard of or are hearing about umbrella insurance for the first time, TAS Insurance Agency is here to help you see how this coverage can protect you.

What is umbrella insurance?

It’s the safety net you can run to when your typical insurance coverage runs out. Your home insurance covers your dwelling, for instance, when a fire damages your house. While home insurance covers your asset, there is something called lawsuits. Assume a guest slips and injures their head in your bathtub. You could be sued. 

Although your home insurance has liability coverage, it can only do so much when faced with substantial claims. In such instances, it’s where umbrella insurance comes into play. Umbrella insurance is the extra liability coverage that takes over from where your boat, auto, or home insurance leaves off. 

How does umbrella insurance protect me?

It’s worth noting that umbrella insurance protects you against liability claims from third parties. For instance, if you are involved in a severe auto accident, your auto insurance will cover damages to your car and injuries that you might suffer. 

On the other hand, the liability coverage of your auto insurance covers injuries and property damage to the other motorist. However, when the liability claims exceed your auto insurance limit, umbrella insurance takes over. Ultimately, umbrella insurance protects you and your family members in the following areas:

  • Property damage caused to others
  • Bodily injury to third parties
  • Pays for legal costs
  • Provides personal liability protection against claims like libel, slander, and malicious prosecution

While you might have heard that umbrella insurance is for the rich and famous, this notion is partly true. Umbrella insurance is suitable for anyone earning a livelihood and has a high chance of being sued. 

Get umbrella insurance today in Phillipsburg, NJ!

Are you looking for umbrella insurance in Phillipsburg, NJ? Please look no further than TAS Insurance Agency. Contact us today, and we will help protect your assets.