Umbrella Insurance

Umbrella Insurance | Luis Guerra Agency LLC | Yorktown, NY | (914) 600-1990

What is Umbrella Insurance?

Umbrella insurance is a type of insurance policy that provides liability coverage that augments the insured’s existing automobile or homeowner insurance policy. An umbrella insurance policy can protect you and your assets when your current insurance isn’t enough to pay out damages from an accident or incident on your property. An umbrella insurance policy becomes effective when the limits of ordinary insurance policies reach their maximum payout and can protect your assets from claims against you.

For example…

If you are an insured automobile operator that is involved in an accident, and an investigation of the accident reveals that you as the driver were responsible for the accident, any party who has been injured or otherwise affected by the accident may be able to sue you for damages beyond the limits of your insurance coverage. You may be responsible for someone’s loss of earnings if they are unable to work, or you may be responsible for the costs of their rehabilitation, if necessary. That means assets of yours, like your savings or your home, may be liquidated (sold) to settle the claim.