How Umbrella Insurance Works

Making sure that you have all the insurance you need may require having more than just home and auto insurance policies. It may also require having an umbrella policy. If you have questions about this type of policy or want to get started with it, call us at Hedgepeth-Hutson Insurance Services Inc. in Nashville, NC.

Insurance for Accidents

If there is an accident with your vehicle, you have auto insurance. If there is an accident in your home, you have home insurance that includes liability coverage. The problem is that many people don’t have enough liability coverage in their home or auto policies. Without enough coverage, you could be on the hook for a lot of money after your insurance maxes out and won’t pay all of the bills for medical expenses or property damage. When you get an umbrella policy, it will add to the liability coverage you have in both your home and auto policies. 

Using Your Umbrella Policy

When an accident happens, the liability coverage you have through your home and auto policies is there to protect you. However, it will only do that up to the policy’s maximum payout. And with liability insurance, this can be quite low when considering how much medical bills and other related expenses can cost. When you have umbrella insurance, it comes in after that policy has maxed out to pay for what is leftover. Umbrella policies come with extremely high maximums to have better peace of mind. With this policy in place, you are far better protected if someone has an accident in your home or an accident is caused by your vehicle. 

Get Insured With Umbrella Insurance

When you want to know that you have better protection, think about the coverage you would get from an umbrella policy. Contact us at Hedgepeth-Hutson Insurance Services Inc. in Nashville, NC, when you want to know more.

How Does Umbrella Insurance Protect Me?

Do you feel like your current insurance coverages cover you and your assets adequately? What would happen if you are faced with significant liability charges? Would your home, auto, or boat insurance suffice? If the answer is no, you need to consider umbrella insurance from Hedgepeth-Hutson Insurance Services Inc. of Nashville, NC. 

What is umbrella insurance?

Umbrella insurance is one of the most commonly misunderstood insurance coverages. Perhaps, because of its name “umbrella,” most people assume that this insurance coverage covers you against everything. Well, the truth is that umbrella insurance gives you extra liability protection when your conventional liability coverages run out.

Umbrella insurance isn’t offered as a stand-alone insurance. It rides on other insurance coverages like auto, renters, home, or boat insurance. Additionally, umbrella insurance doesn’t cover damage or injuries to you. For instance, if someone steals your car or fire destroys your home, umbrella insurance won’t step in.  

How umbrella insurance protects you

Then, if umbrella insurance doesn’t protect my own injuries or property damage, how does it protect me? Below is a rundown of how umbrella insurance protects you. 

  • Pays defense costs: If you are sued, you will have to pay lawyer and processing fees. These costs can quickly stack up, leaving your pocket dry. Thankfully, when you have umbrella insurance, it covers legal costs including, settlement claims when you are found guilty.
  • Provides property damage protection: Assume that a tree from your garden falls over and damages your neighbor’s house. Your home insurance protects you, but umbrella insurance kicks in when your home insurance limit is exhausted.
  • Provides bodily injury coverage: Umbrella insurance protects you when you cause injuries to third parties. For instance, if you are at fault for a severe accident causing significant injuries to the other driver, umbrella insurance covers medical costs and legal claims exceeding your auto insurance.
  • Personal liability protection: Covers you against libel, slander, and other personal liabilities not covered by other insurance coverages. 

Would you like to get umbrella insurance protection in Nashville, NC? Please contact Hedgepeth-Hutson Insurance Services Inc. Our team will help you choose an umbrella insurance plan that protects your assets and future earnings.

How umbrella insurance protects your assets

The American dream is to own a home and to accumulate assets. Every generation wants to be more successful than the one before, and as you get more successful, you acquire more assets. Unfortunately, we live in a world where having assets makes you more vulnerable to legal action against you. It could be as the result of a car accident, personal injury, or a business liability case. Auto, home, and commercial insurance all come with liability protection, but is this protection enough to protect your assets? This is a question that the experienced agents at Hedgepeth-Hutson Insurance Services, Nashville, NC can help you to answer. 

Umbrella insurance is what is known as excess liability insurance. It is not a policy you can buy unless you already have a policy with liability coverage. The amount of liability coverage on many policies is pretty basic, and if the amount of assets you have is not basic, umbrella insurance can be the answer. 

Suing has become almost a national pastime. It doesn’t take very much for someone to decide to sue you, especially if they think that you have assets and you can afford it. You have worked hard to get to where you are, and it could all be gone in a heartbeat if you don’t have enough liability insurance. If you are sued and have legal expenses, these can add up pretty quickly as well. Depending on the reason for being sued, your insurance will pay up to the limit of your policy. At this point, an umbrella policy kicks in. Umbrella insurance is usually between one and five million dollars. 

Umbrella insurance is something anyone with assets should consider having. Talking to the team at Hedgepeth-Hutson Insurance Services, Nashville, NC can help you to decide if this inexpensive coverage is right for you. Give our office a call to make an appointment.