Exploring the Limits of Umbrella Insurance

Umbrella insurance is a type of coverage that provides extra protection beyond what your existing liability policies offer. If an accident occurs on your property and the bills exceed the limits of an existing liability policy, the umbrella policy covers the additional amount you owe. However, umbrella insurance has its limits, and we at Pikes Peak Insurance Agency in Falcon, CO, want to help you understand those limits.

How Umbrella Insurance Enhances a Liability Insurance Policy

Liability insurance is designed to protect you against financial loss resulting from accidents, such as injuring someone else in a car accident or a slip and fall accident at your home. Your liability policy may not offer enough coverage, but an umbrella insurance policy can fill in the gaps. However, there are limits to what umbrella insurance covers.

Understanding the Limitations of Umbrella Insurance

This type of insurance is intended to cover damage to another person or property. It won’t cover your own injuries or damage to your personal property. Umbrella insurance also doesn’t cover damage resulting from a malicious or illegal action you willingly took. And it won’t cover liability for certain types of contracts you entered into.

Another area of exclusion is boats and watercraft, but you may be able to get coverage if you have an existing boat insurance policy. This issue varies from company to company, and an insurance agent can help you find a provider that offers umbrella insurance for watercraft.

Contact Us Today to Learn More About Umbrella Insurance

Our Pikes Peak Insurance Agency agents are here to discuss your umbrella insurance needs and explain how it works. We’ll go over the details with you to ensure you understand how this type of coverage works and help you feel comfortable with your decision to purchase a policy. Contact us at our office in Falcon, CO, to get started.