Understanding how different insurance products work is essential to making good insurance choices. Here at Rickey McGill Insurance Agency, serving Arlington, TX, and the surrounding areas, we want to help our clients increase their knowledge of insurance products. Keep reading to learn more about umbrella insurance.
How Does Umbrella Insurance Work?
Umbrella insurance is a special insurance policy designed to pick up when another insurance policy has been exhausted. This type of coverage can help protect you from unexpected liability expenses. If you exhaust an insurance policy and there are still expenses left to be paid, those expenses will come out of pocket for you. This could be difficult to handle financially, affecting your financial stability for years.
What Is Policy Exhaustion?
We say that a policy has been exhausted if it has paid out up to the maximum payout amount, but there are still expenses left. These expenses then become your responsibility.
Who Needs Umbrella Insurance?
Anyone can benefit from this type of coverage, but certain people should seriously consider investing in this product. For instance, if you have many assets you want to protect, umbrella insurance is a good idea. This will help to decrease the chances of having your assets taken for liability expenses. You also might want to consider an umbrella policy if you are involved in hazardous hobbies or sports or work a job with a high occupational threat.
If you would like to learn more about umbrella insurance, don’t hesitate to contact us at Rickey McGill Insurance Agency, serving Arlington, TX, and the surrounding areas. We will happily answer your questions today and help you find the policy for your needs.