Liability insurance is one of the most essential and important benefits you can buy, and it will protect you if you ever make mistakes that you must take responsibility for. Still, all standard liability policies have their limits, which is why you should consider the perks of investing in an umbrella liability policy. It’s added protection that will be there during exceptionally challenging loss scenarios. 

Lupton & Luce Insurance is Long Island’s preferred independent insurance agency, and we are committed to exploring options for personal benefits, including umbrella coverage, for our clients. Call us at (631) 727-4114 or request your free policy quote now! 

Common Umbrella Insurance Questions:
 

What Is Umbrella Insurance?

Liability insurance is designed to cover you if you make mistakes that harm other people. For example, the liability coverage within your auto insurance policy will cover you if a wreck is deemed your fault and you are responsible for paying the property damage and injuries that you cause to another driver.

However, your liability benefits are going to have limits, and your plan will only pay up to those limits for all the losses you owe others. Once you reach those limits, you could still owe significant third-party costs that you won’t have a liability insurance benefit to pay with. At this point, you can turn to umbrella liability insurance, which is designed to provide additional assistance.

What Is Umbrella Insurance Used For?

Suppose that your auto liability insurance has a $500,000 bodily injury liability insurance limit. If you are deemed at fault for an accident that severely injures another driver, then you might be liable for paying them compensation for their injury costs. Your $500,000 worth of liability insurance will help you make that remittance.

If the injured party sues you for $1.2 million worth of medical bills, then you might still have to pay that amount. However, your standard liability limits would leave you with a potential $700,000 gap between what you owe and what your insurance will pay. Umbrella liability insurance is designed to fill in this hole. After your liability policy pays its $500,000, you can file a claim against your umbrella policy for the remaining $700,000.

When Should You Get Umbrella Insurance?

This coverage is important for anyone who doesn’t want to face crippling financial strain because of liability lawsuits and at-fault accidents.

A single personal umbrella policy can provide you with at least $1 million in added liability benefits, and one policy can often apply to any number of personal policies—auto, home, renters, boat, motorcycle—at the same time. So, with a single plan, you could get a lot of extra coverage.

Our agents are committed to helping you design the optimized personal insurance portfolio for your needs. Just come to us and we’ll make sure you get a quality, affordable umbrella policy that is perfect for your needs.

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