Can Someone Please Give Me a Clear Explanation of Umbrella Insurance?

When you invest in insurance policies, you will at first need to decide which types of policies you need. If you are the owner of a vehicle, then you need to get an auto insurance policy. You will need to choose an insurance company, like Elliott & Associates Insurance serving Opelika, AL, to make sure you are fully covered. Another type of insurance you may want to consider buying is umbrella insurance.

What is umbrella insurance?

Many people are confused when they hear the term umbrella insurance. Either they have never heard of it before, or they don’t understand what it is. Thankfully, though, it’s not that difficult to understand once you have someone give you a simple explanation of it.

This type of insurance is a form of extra liability insurance. It does not stand as a type of insurance by itself. Instead, it serves the purpose of paying out benefits if your regular policy is exhausted. For example, if your auto policy reaches its limit of paying out $25,000 for bodily injury. If your medical bills exceed this amount, an umbrella policy could be of the utmost benefit. It can also be used with home insurance, commercial insurance, and many other policies. It can also help you with liability and lawsuits should they arise.

Many people think that umbrella insurance is really expensive. What they don’t realize is that this insurance is not just for the wealthy. If you would like to learn more about the benefits of purchasing umbrella insurance, please contact Elliott & Associates Insurance serving the Opelika, AL area today.