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Heimgartner Insurance Inc.

4708 Morningside Ave
Sioux City, IA 51106

Heimgartner Insurance Inc. Blog

Is umbrella insurance only for the wealthy?

Umbrella insurance is surrounded by myths and misunderstandings. What it is and why it is valuable is not universally understood. At Heimgartner Insurance Inc in Sioux City, IA, we try to make sure that our customers have the information they need to make educated decisions about the coverage they choose. 

To understand the benefits of umbrella insurance, you need to know what it is and what it does:

Think of your umbrella insurance as an umbrella. Your assets are the person using the umbrella and the rain is a danger to your assets. The umbrella keeps the rain away from the person and umbrella insurance protects your assets from any danger to them. Another analogy would be that the umbrella covers all of the policies that you carry are protected and extended with the umbrella insurance coverage. 

Umbrella insurance is an additional layer of liability protection that supplements the liability coverage that you already have. Umbrella insurance is not a stand-alone policy, it can only be purchased if you already have a policy with liability coverage. You don’t need to get it from the same company, but you do need to have a policy. Liability coverage is on many different policies, including home, auto, and commercial. 

How it works is this, if you are sued, your primary insurance will cover you up to the limit of your policy. If you don’t have umbrella insurance, you are responsible for paying any judgment beyond the limit of your policy. If you have umbrella coverage, it will kick in when you reach the limit of your primary policy up to the limit of the umbrella policy. Legal expenses are also covered. 

Get Umbrella Insurance Today

Contact Heimgartner Insurance Inc in Sioux City, IA to discuss how umbrella insurance may be a good choice for you. 

5 Fast Facts About Umbrella Policies

Umbrella insurance policies are increasing in popularity because they protect what your regular home or auto insurance policies might not. Here are five fast facts you should know about umbrella policies before deciding if one is right for you.

1. Umbrella Insurance Provides Additional Liability Coverage

Most people already have some sort of liability insurance to cover the cost of injuring another person or damage to someone else’s property. But personal umbrella liability policies can increase your protection and provide additional coverage for extraordinary situations such as:

• A legal judgment resulting from any copyright, libel, or slander suit.

• Lawsuits resulting from allegations of professional negligence such as malpractice or errors and omissions allegations against an attorney or accountant.

2. Umbrella Policies Do Not Stand Alone

Umbrella insurance is not designed to act as your primary policy. Instead, it supplements the liability coverage in your homeowners and auto policies. Umbrella insurance only kicks in when you exceed the limits of an underlying policy.

3. Umbrella Coverage May Protect You Against Lawsuits

In some cases, umbrella insurance can protect you against a lawsuit even when your primary policy won’t. For example, if you are accused of libel, slander, or copyright infringement, umbrella insurance may protect you against the accusation even if your primary policy doesn’t.

4. Umbrella Policies Typically Cover Additional Expenses

If you’re sued, your primary insurance will pay the damages and then add any remaining expenses such as legal fees to what you owe. An umbrella policy can pick up where your standard policies leave off and pay for these additional expenses.

5. Umbrella Insurance Offers Broad Protection

Umbrella insurance provides broader protection than your home and auto policies. That’s because most basic policies are written with the state’s minimum liability requirements in mind, so they may offer less protection than you need. An umbrella policy can provide extra coverage for unique situations for which your regular policies don’t provide any.

Umbrella policies can protect you financially in the event of a lawsuit by providing extra liability coverage. If you’re looking to purchase an umbrella policy in Sioux City, IA, contact Heimgartner Insurance Inc and speak with one of our insurance professionals today.

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