Umbrella insurance is a type of liability insurance that’s added to your existing policies and covers a higher limit. Our team at Paramount Insurance Services in Sweetwater, TN can help you find an umbrella policy that can protect your assets from unforeseen circumstances. Policy coverage starts at $1 million and can increase depending on your needs.
How Does Umbrella Insurance Work?
If your auto policy provides $250,000 in liability coverage, and you, your spouse or your children are involved in an accident with someone who successfully sues you for $750,000, you are responsible for coming up with the remaining $500,000. With the correct umbrella policy, the umbrella liability will kick in right where your auto insurance policy ended to help cover the remaining balance. Otherwise, you would be responsible for $500,000.