Umbrella Insurance

What Is an Umbrella Policy?

Umbrella insurance is a form of liability coverage. It can help safeguard you from being liable for personal injuries or third-party property damages if the third party takes legal action against you. It will provide added protection to your assets. You will already need to have auto and home insurance in place before you can get an umbrella policy, but umbrella policies may be cheaper than getting additional liability coverage on these policies.

An umbrella policy will cover an accident that results in bodily injuries and property damages. Property damage liability includes damages to other vehicles or other types of property. Bodily injury liability will cover the expense of injuries, including medical bills. It can also cover other claims not covered by home or auto. Policies cover not just you but family members living in your household as well.

Since auto liability insurance is already required in New York, you may be wondering how an umbrella policy can help you. If you are involved in an accident where you are at fault and the damage claims total $40,000 but you only have $10,000 for property damages on your standard auto policy, then you are responsible for the rest out of pocket. With umbrella insurance, this additional coverage will kick in to make up the difference. An umbrella policy doesn’t kick in until coverage limits are reached for other policies.

Should You Have an Umbrella Policy in New York?

An umbrella policy can be a good investment for anyone in the state. However, if you commute long distance, carpool with other drivers, rideshare, or drive in high traffic areas or with treacherous roads then your chances of an accident increase, and umbrella insurance can help you if you are found to be at fault for an accident. Other risk factors include having high assets, owning a rental property, coaching youth sports, or owning certain dog breeds. To determine how much umbrella insurance you should have, speak with an agent at Hagerdon Insurance Agency Inc.

Contact Hagerdon Insurance Agency Inc. to get a quote on umbrella insurance.