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Clarinda, IA 51632

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Umbrella insurance FAQs

Umbrella insurance is one of the most confusing types of insurance and most people have a lot of misconceptions about what it is and what it does. Even the name is confusing, it doesn’t insure your umbrella. What exactly does it do? For answers you can count on,  Sump Insurance in Clarinda, IA is your full-service independent agency. Service is our specialty and we are dedicated to making sure we provide our customers with the best possible insurance experience.  

What is umbrella insurance? 

Umbrella insurance is excess liability coverage. It does not stand alone, it is an addition to another policy or policies that have liability coverage. An umbrella policy protects your assets from all the adversity out there much like an umbrella protects you from the storm. Umbrella policies start at around a million dollars and go up from there.

Who can benefit from umbrella insurance?

If you have assets, you can benefit from umbrella insurance. It can be added to boat insurance, motorcycle coverage, renters insurance, condo coverage as well as home and auto insurance. If you have more than just a basic life, you can benefit from additional liability protection. 

Is umbrella insurance only for the rich?

No, this is one of the most common myths about umbrella insurance. If you have savings or own a home, you have enough assets to be in danger from a judgment against you. 

Can I buy umbrella insurance alone? 

No, umbrella insurance is additional liability coverage, so you must have a primary insurance policy that includes liability. 

Do I need to get my primary liability policy from the same carrier as my umbrella insurance?

No, there is no requirement to get the umbrella policy from the same company. Shop around for the best deal, though with the same company, you might get a multi-policy discount.

If you want to discuss the benefits to you of umbrella insurance, contact Sump Insurance in Clarinda, IA.

Who Needs Umbrella Insurance in Clarinda IA?

You have perhaps heard about umbrella insurance, but do you understand what it is and what it covers? Umbrella insurance is extra liability coverage that supplements the liability coverage in your auto, boat, or home insurance. In other words, umbrella insurance picks from where other insurance coverages leave off. 

But do I really need umbrella insurance? Isn’t it for the rich and famous? If you find yourself asking these questions today, you have an answer. All you need to do is to keep reading as Sump Insurance of Clarinda, IA elaborates on who needs umbrella insurance. But first, let’s explore what umbrella insurance covers.

What does umbrella insurance cover?

Umbrella insurance is liability coverage. It covers other people but not you or your property. Ultimately, umbrella insurance protects you when others accuse you for:

  • Property damage
  • Bodily injury
  • Personal liability, including slander and libel

Additionally, umbrella insurance covers your defense costs, including legal processing costs, lawyer fees, and settlement claims. 

Who needs umbrella insurance?

There is a popular notion that umbrella insurance is for the wealthy. While umbrella insurance protects those with significant assets, virtually anyone earning a livelihood needs umbrella insurance. Why? Everyone in America is at the risk of being sued. And if you have assets and earnings, they are on the line if you face significant liability claims exceeding your typical liability coverages. 

While most people need umbrella insurance, if you are in the below situations, you need umbrella insurance today since the risk of being sued is high. You need umbrella insurance if you:

  • Own a dangerous pet that can bite
  • Chair a charitable organization
  • Own a boat, home, or vehicle
  • Coach youth sports
  • Participate in high-risk hobbies like hunting or skiing
  • Own a business

Buy umbrella insurance today!

Would you like to boost your auto, home, or boat insurance? Buying umbrella insurance saves the day when lawsuits come calling. If you are in Clarinda, IA and its environs, please speak to Sump Insurance for umbrella insurance coverage.

Understanding Umbrella Insurance

It’s doubtful that you would ever lose a liability lawsuit for an amount greater than your existing insurance policy. However, if this occurs, you’re at risk of losing your own personal savings in a final settlement ruling. Thus, understanding umbrella insurance is vital to avoid financial demise. Speak with Sump Insurance of Clarinda, IA on how umbrella insurance works to your advantage. 

What is Umbrella Insurance?

Umbrella insurance is a method of gaining significant liability coverage against claims that go over the limits of an individual’s (home, auto, boat, and others) insurance policy. The coverage is supposed to pick up where the other policies have left off. Often, umbrella insurance covers all injuries to another party and any damage to their personal property. However, this type of coverage isn’t available for an insurer’s personal assets. 

The liability coverage found in umbrella insurance doesn’t protect the policyholder but other family members who live with them. Before agreeing to any policy changes, get the requirements needed to be considered a family member. Some umbrella insurance agreements come with set age limits for those parties under consideration. 

The Importance of Umbrella Insurance

In our ever-growing litigious world, umbrella insurance becomes a valuable protection tool if your name appears on a pending liable lawsuit. Most scenarios of this nature involve being sued and the case outcome going against your side. The final judgment could ruin you financially forever. 

To discover the importance of umbrella insurance in your life, take a look at your personal assets’ total value. If the amount is quite significant, then adding umbrella insurance for more liability coverage is wise. It’s the type of protection needed to eliminate any chance of losing your personal assets in a possible lawsuit. 

In the end, umbrella insurance is a small price to pay for peace of mind. Take the time to speak with an employee of Sump Insurance of Clarinda, IA, as they can show the differences in various coverage options. Schedule an appointment today!

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