Liability insurance is included in your homeowner’s, automobile, boat, and renter’s insurance. In other words, you are covered if you are found responsible for an accident. However, in the event the losses of the other party exceed your policy’s limits, the difference could come directly out of your pocket. This could leave you bankrupt. In situations like this, umbrella insurance can be beneficial. Here are some commonly asked questions Renee Oliver Insurance Agency Inc. has had, along with their answers, for Silver Spring, MD residents.

What Exactly Is Umbrella Insurance?

Look at umbrella insurance as a backup to your standard liability coverage that can work with all of your insurance policies. In the event that the damages of an incident exceeds the limits of your policy—be it home, auto, or commercial—your umbrella insurance policy will kick in, take over, and cover the difference.

What Does Umbrella Insurance Typically Cover?

Umbrella insurance is designed to provide coverage for the difference between the liability limits of your insurance policy and another party’s losses. Therefore, if you are found at-fault for an accident that resulted in $150,000 in damages and only have $50,000 in liability coverage, your umbrella insurance would cover the remaining $100,000.

What Happens If I Don’t Have Umbrella Insurance?

If you don’t have umbrella coverage, you could potentially be held liable for any damages that go over the limits of your existing liability coverage. The other individual could sue you for their losses, potentially taking your home, savings, retirement fund, and other assets.

Insurance can offer much-needed peace of mind, and umbrella insurance adds even more to that. If you would like to learn more, reach out to us at Renee Oliver Insurance Agency Inc. We have helped many residents of the Silver Spring, MD and can help you as well!