If you are ever sued for bodily injury or property damage, your home and car insurance policies will protect you up to the policy limit. But what if your legal liability exceeds that? The legal costs alone could greatly exceed your policy’s coverage.
When does Umbrella Insurance take effect?
Once your liability limits on your homeowners or car insurance are exhausted, Umbrella Insurance will pay the balance of the claim. For example, if you have a homeowners insurance policy with liability coverage of $300,000, the umbrella pays the claims above up to the top amount you select, such as a million dollars. Cato Insurance Group offers Umbrella Insurance in one million dollar increments up to ten million dollars. Umbrella Insurance premiums are relatively low since the majority of the claims come from the first policy.
Do you need Umbrella Insurance?
Consider your assets. Do you own a home, car, boat, stocks or other property? An Umbrella policy shields your assets more broadly than primary coverage since it goes beyond your standard policy limits. Also Umbrella Insurance may cover claims that are excluded by the primary policies.
If you have any questions, give us a call at 1-888-775-CATO (2286).