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Your Umbrella Insurance Policy: What It Does & Why You Need One

Learn what an umbrella insurance policy does and why it may prove to be your most useful investment.

Protecting your family and assets is a top priority, which is why people have insurance: to give a financial cushion to you and your family if you are the cause of a nasty accident. Your home and auto insurance policies already offer some protection, but what if you find yourself in a situation where these coverages are simply not enough, or you find that your situation falls in a gap within your coverages. This is when your umbrella insurance policy could come in and save the day by offering you the coverage you need.

Your Umbrella Insurance Policy in Action

Let’s say that you’re at fault in a car accident that injures another driver, your regular auto insurance may cover this, but what happens if the accident is a tragic one? If the other driver’s injuries are severe, their medical bills may easily surpass your coverage. This means he could sue you and could mean that your assets would be at stake. And if the accident caused an injury that kept them out of work for six months, all of a sudden you are now facing a $1 million lawsuit, and you are left wondering how on Earth you are going to collect that much money.

You may think that this coverage is only for rich people who encounter these kinds of situations, but you be surprised to know that the majority of umbrella insurance policy owners find themselves in the middle-class.

An umbrella insurance policy can help to keep your expenses covered in case of any costs that lie outside of your homeowners insurance or auto insurance. Contact the Beaverton and Portland Oregon independent insurance professionals at Fox Insurance Agency for all of your insurance needs.