Here at Renee Oliver Insurance Agency, Inc., we know we shouldn’t play favorites, and yet, umbrella insurance is certainly one of our favorite types of insurance policies. Umbrella insurance is a unique type of insurance coverage in that you can apply it to just about any asset in your life. It’s flexible and adaptable, and yet, a lot of Silver Spring, MD and other customers of ours are often new to how it works.

We get many questions about umbrella insurance policies, including whether they’ll pay out in the event someone puts out a claim against them. If you’re wondering the same, continue reading:

Question: Will Umbrella Insurance Pay Out a Claim Against Me?

The answer to this is almost certainly yes! 

Umbrella insurance policies are also called gap policies as they work to fill in the gaps among your existing policies. This type of coverage is most often bought in tandem with a larger policy, like a home, auto, or renter insurance policy, and is designed to provide coverage beyond the limits of such policies while likewise offering coverage for a myriad of things.

For example, you might purchase a personal umbrella policy that boasts $1 million in additional liability coverage. Now, let’s say you have a holiday party at your house and someone slips and falls down your stairs, incurring an expensive injury requiring emergency room care. That person then decides to sue you, and you find yourself in the judgment of $400,000 but hold a liability policy with a limit of $300,000. Your homeowner’s insurance will pay out up to its limits, including legal defense costs, and then your umbrella insurance will pay out the rest. 

Learn More With Renee Oliver Insurance Agency, Inc.

Contact our friendly team at Renee Oliver Insurance Agency, Inc. to learn more about the advantages of umbrella policies and to get one for your Silver Spring, MD household.