Umbrella Insurance Yorktown NY

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.

Know your limits…

Certain automobile insurance coverage amounts are stipulated by law, and they represent a minimum amount of liability coverage for an average driver. You can elect to increase the level of coverage your insurance policy provides, but increases in coverage amounts are directly related to increases in policy premium payments. And most people feel that they pay enough for their auto or home insurance.

Don’t get the idea that if you pay enough money to be insured, you must be insured enough. Your insurance policy payments are determined by a number of considerations, but one of the most important factors is your coverage amounts. Know what you’re paying for in terms of the amount of liability coverage you are buying and consider if it is enough.

Know your worth…

An umbrella insurance policy may be a wise investment for you if you feel like (or know) that you have a lot to lose. Consider your savings, your home, your valuables, your vehicles, and your future income. These need to be protected for the long-term happiness and functioning of your family. A sudden catastrophic incident may erase all this from your family’s life. The more you have to lose, the more you need to protect yourself with an umbrella insurance policy.

Talk with your insurance agent about the limits of your coverage or better yet, call Luis Guerra and the professionals at Guerra Insurance in Yorktown, Westchester County. They have the knowledge and experience to review your insurance needs, identify any critical liability exposures, and help keep you, your family, and your future secure from catastrophic financial claims of liability.