Basic liability insurance on your car or home covers losses, damages, lawsuits or other similar claims. If you are in a car wreck, your liability will cover damages to other people. Same for your home. If someone is injured at your house, liability insurance covers the costs medical expenses, lost wages and other associated costs. 

However, there are limits on what insurance will cover. You can look at your policy or ask your agent what those limits are. Are they too low? That’s where umbrella insurance comes in.

Umbrella insurance takes over after those limits are met. An umbrella policy is usually written at a much higher limit than your auto or home insurance. If you are a fan of Dave Ramsey, you know that he recommends everyone have a minimum of $1 million of umbrella insurance. The $1 million is recommended because you want to protect your property. If you are sued and the costs exceed your regular policy, then your car and home may be in jeopardy. But, if you have an umbrella policy, then you have much more protection for your finances and assets. 

But, what does umbrella insurance cover? It covers you if someone sues you for injuries from an auto accident or injury on your property. It can also cover legal fees, false arrest, libel and slander. Umbrella insurance includes professional liability for teachers, psychologists, financial planners and investors. If your job involves providing services to clients, you need umbrella insurance on top of your professional liability insurance. 

Umbrella insurance is what its name suggests. A liability insurance that covers a multitude of things. The best way to know if you need this insurance is to consult your independent agent. 

Get the coverage you need. Call Stastny Insurance Agency at 410-254-1500 for more information on umbrella insurance.