How Does an Umbrella Insurance Policy Work?

Adding Extra Protection for You and Your Assets

The main reason people purchase insurance is to protect their assets and their family. Umbrella insurance goes beyond a regular auto or homeowners insurance policy and provides extra security against the risk of getting sued for damages caused by injuries to others in an accident or for damages to other people’s property. If you are located in the area of Willmar, Minnesota, and have questions about what type of insurance policies you may need, MG Insurance Inc. can help. Read on to learn more about umbrella insurance policies and how they may be a good compliment to your existing insurance policies.

How Does an Umbrella Policy Work?

Umbrella insurance is a type of liability insurance intended to add additional liability coverage to another insurance policy like homeowners or auto insurance, and is sometimes referred to as excess liability insurance. It can be especially useful if you become liable for a claim that is larger than your other insurance policies can cover. For example, if you are sued for damages exceeding the liability limits of your car or homeowners insurance policy, umbrella insurance would help pay what you owe. It prevents a policy holder from paying out of pocket if the cost of the original insurance policy has been surpassed. Umbrella insurance can also protect you against other liability claims, such as slander, libel, or false imprisonment, and if you own a rental property, it can also protect you for beyond the amount that your renter’s policy covers. An umbrella policy does not just cover you as the policyholder, it can cover other members within your household, however, it is important to understand who your policy protects as a household member in order to get the necessary coverage needed.

Do I Need an Umbrella Insurance Policy?

Umbrella policies can be beneficial for most people because high cost accidents can unfortunately happen to anyone. Having an umbrella insurance policy will prevent a policyholder from paying for expenses out of pocket for another party’s legal or medical bills if they are found to be responsible. It is often common for people to have umbrella insurance if the total value of their assets is greater than the limits of your auto and homeowners liability; essentially you want to have enough liability to completely cover your assets so that you do not lose them during a lawsuit. If you are at risk of being sued, which most people are in a sense due to natural everyday risks, umbrella insurance will offer peace of mind.

If you want to know more about umbrella insurance in Willmar, Minnesota, contact MG Insurance Inc. today for a consultation.

Contact Us

MG Insurance Inc
333 5th St SW
Willmar, MN 56201
Phone: (320) 235-9394

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