Umbrella Insurance Facts You May Not Know

An umbrella insurance policy is designed to offer extra liability coverage that goes beyond the limits set within your current policy. While the agents at Alliances Insurance Partners, serving the Scottsdale, AZ area, can answer all of your questions about umbrella insurance, here are the top facts you may not know about umbrella policies.

Second Layer of Protection Provided

An umbrella insurance policy is designed to provide relief when your current coverage has been maxed out. Umbrella insurance coverage will have very high protection limits to cover you when your home, automobile, or other insurance policy coverage has been exhausted. In Arizona, umbrella insurance policies typically have coverage limits that start at $1,000,000.

Safety Nets for Lawsuits

The judiciary system in the United States has a notorious reputation for awarding large settlements. A lawsuit against you may not only award for punitive damages, but also intangible losses like pain and suffering. A personal umbrella policy can save you from financial ruin by protecting both current and future assets when a judgment is rendered against you.

Surprisingly Affordable

Despite the high coverage provided through umbrella insurance policies, companies offer low competitive rates. With the affordable cost of umbrella insurance, it makes good financial sense to add a policy to supplement your current coverage. For instance, if you are in a car accident that caused injuries and the court awards the injured party $700,000, you will have to find a way to come up with the extra $300,000 if your insurance policy has a maximum coverage amount of $400,000. An umbrella insurance plan will alleviate the major financial burden caused by the lawsuit.

Alliance Insurance Partners serves clients in Scottsdale, AZ and surrounding areas. Contact our office today to discuss umbrella insurance options and how these policies can provide the level of protection you need to safeguard your assets in one of the more than 28 states we serve.