Understanding the Benefits of Umbrella Insurance

We are independent insurance agents at Hinman & Associates Insurance in Reno, NV. We take our responsibility to work for our customers seriously, including helping them see the benefits of umbrella insurance for their financial planning.

What is Umbrella Insurance?

Umbrella insurance is excess liability insurance. It provides additional coverage above the coverage that your current policy has. Many types of insurance provide liability coverage. Liability is part of your policies for your vehicle, boat, home, condo, motorcycle, rental unit, and recreational vehicle. You need to have a policy that includes liability to add umbrella coverage. It is not a stand-alone policy.

How Umbrella Insurance Works

Umbrella insurance is aptly named since it works like an umbrella. If you think of yourself as your assets and the rain as everything that puts you at financial risk, it offers protection. The world we all live in allows people to be sued for various things, and your risk of being sued or exceeding the limits of your policy is greater than you may realize. An auto accident, a pet who hurts someone or someone’s pet, or a teen who makes a mistake are some of the risks.

What Does Umbrella Insurance Pay?

When you are sued, there will be legal costs associated with your defense. Your liability insurance will cover the expense up to your policy’s limit. Then, the umbrella insurance will kick in and pay up to the limit you have on it. This protects your assets from being attached or your equity being used to pay the additional costs.

Contact Hinman & Associates Insurance in Reno, NV, and let us provide you with a quote for umbrella insurance and any other insurance needs you may have.