What Is Umbrella Insurance?
You’ve probably heard of the term “umbrella insurance” before, but you might not know what it is exactly or what it covers.
An Umbrella Insurance policy provides Michiganders extra liability coverage. This coverage expands beyond your home, auto, or watercraft insurance. If you’re at risk of being sued for damages to another person’s property or injuries, you’re protected. Umbrella Policies add extra liability protection which is great for those who have lots of assets or expense assets and have a high risk of being sued.
Breaking It Down
If you purchased your home, car, or watercraft insurance through Compass Insurance, then it’s best to also purchase your Umbrella Insurance with us as well. This can be less expensive than signing up with another carrier. Some carriers do require the policyholder to have a minimum of $150,000 – $250,000 for auto insurance and $250,000 – $300,000 for homeowners’ insurance.
You may also hear Umbrella Insurance referred to as liability insurance. If you get sued for damages exceeding the liability limits of your car, homeowners, or other types of insurance coverage your Umbrella Policy helps pay what you owe – it acts as a fail-safe. It might also provide additional coverage not included in your base insurance policy.
Who Should Buy It?
Clients who often purchase an umbrella insurance policies in Michigan are those who own property, have a large amount of savings, or own things that can cause injuries such as a pool, trampoline, or dog. Some activities also increase the chance of a lawsuit including:
- Being a landlord
- Coaching kids’ sports teams
- Serving a nonprofit board
- Posting reviews of products and businesses regularly
- Participating in sports where you can easily injure other players
How Does It Work?
If you’re in an at-fault accident and injure another driver, it can cost hundreds, thousands, or even millions of dollars. Your Auto Insurance only covers up to a certain liability amount, leaving you to possibly pay a large chunk of lawsuit costs out of pocket. Umbrella Insurance comes in handy because it helps cover some of the additional costs your Auto Insurance wouldn’t otherwise cover, meaning you pay less out of pocket.
The cost of your Umbrella Insurance policy will depend on multiple factors such as the number of properties and vehicles you own, your insurance score, and more.
Compass Insurance Has The Umbrella Insurance You Need
To find out how you can get umbrella insurance coverage on your policy, call one of our experienced agents today at 616-245-5555!
Ask About Our $1,000,000 Asset Protection Umbrella Policy For Around $145 Per Year!