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Safe Insure Plus, LLC

2105 S. Elliott
Pryor, OK 74361

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Oklahoma Auto insurance coverage

What is Umbrella Insurance and How Does it Work?

No one is perfect, and man is to error. That’s why most of us buy liability insurance. Liability insurance is that policy that protects you financially in case you cause property or bodily injuries to others. The truth is your liability coverage for your auto, home, or boat is not adequate. That’s why umbrella insurance is crucial.

So, what is umbrella insurance, and how exactly does it work? Well, if these are your questions, be sure to read through the article as Safe Insure Plus LLC takes you through the ins and outs of umbrella insurance.

What is umbrella insurance?

Umbrella insurance, also known as personal liability insurance, is additional liability protection that kicks in when your other coverages deplete. Think of umbrella insurance as a safety net for your assets and savings.

When you cause significant injuries or damages exceeding your other liability coverages, you are forced to dig into your pockets to pay for the extra cost, which could interfere with your savings or, worse, your assets if the amount is enormous. But with umbrella insurance, you rest assured knowing the policy will pay for the extra cost.

Additionally, umbrella insurance covers what your other standard policies do not cover, like slander, false arrest, malicious prosecution, and libel.

How does umbrella insurance work?

Ideally, umbrella insurance steps in when your other liability limit gets depleted. For example, assuming you are at fault in an accident that causes major injuries and the medical bill amount to $500,000. Suppose your auto liability coverage is $400,000, leaving a balance of 100,000 dollars. At this point, your umbrella insurance steps in and pays for this balance.

If you purchase umbrella insurance, it covers the below when accused by third parties:

  • Bodily injury liability
  • Property damage liability
  • Personal liabilities like libel
  • Certain lawsuits

Umbrella insurance in Pryor, OK

If you value your assets, then umbrella insurance is a must-have coverage. One event can deplete your other liability policies, which could force you to sell your assets or drain your savings account to pay. Don’t wait for worse scenarios. Instead, purchase umbrella insurance today at Safe Insure Plus LLC.