You have probably heard the term umbrella policy, in regards to insurance, but if you’re like most of us, you do not have a firm understanding of what kind of coverage it provides. Simply put, an umbrella policy provides liability coverage above and beyond what your automobile and homeowner’s policies are able to give you.

The main benefit of an umbrella policy is to protect your most important assets (family, home, and car) from unexpected occurrences where you are held as the responsible party for damages and/or bodily injuries. If you are involved in an accident and another party files a claim against you, the umbrella policy covers the damages you are deemed legally responsible for; up to the maximum policy limit.

Typically, people choose to purchase an umbrella policy because they want to do everything they can to prevent a financial disaster due to an unforeseen accident. When choosing the right policy for you, take the following into consideration:

1. Possible risks you face
2. Value of your assets
3. Loss of future income

Remember, all policies (either umbrella or not) have some limitations and provisions vary from state to state. It is always important you read your policy and have a good understanding of what it covers. And, as with anything involving insurance, please don’t hesitate to contact us at VIP Insurance Services should you have any questions regarding umbrella policies or anything else. We pride ourselves in being a resource to all of our clients look forward to answering all of your questions!