With what policies can you purchase umbrella insurance?

With what policies can you purchase umbrella insurance?

Umbrella insurance is a secondary policy, meaning you can only purchase it after you purchased the main policy, such as home or renters’ insurance. This secondary insurance adds to your liability coverage. Associated American Insurance serving Manchester, NH offers this useful insurance that can help protect you from large-scale financial loss.

Policies That Can Add Umbrella

You can only add umbrella coverage to primary insurance that includes liability coverage. Those policies include:

  • Home,
  • Commercial,
  • Auto,
  • Motorcycle,
  • RV,
  • Renters.

You can’t add it to health, life, accidental death, and dismemberment, or other such types of insurance.

How Umbrella Insurance Works

When you file a claim on your primary insurance, it may exhaust your liability coverage on that policy. Umbrella takes up the slack.

For example, your mother-in-law falls down the steps at your home. She breaks her leg and needs to go to the hospital. Your liability insurance coverage in your home insurance may cover a small portion of the cost. You might have $100,000 of liability coverage.

Your elderly mother-in-law cannot live by herself with a broken leg, so she needs to temporarily stay in an assisted living center. She also has to go through physical therapy after the cast comes off. This lets her re-strengthen her leg and practice walking. This rehab costs a pretty penny. Your liability coverage on your home covered a lot of the expenses, but unless you have umbrella insurance, you must pay the rest out of pocket.

If you have umbrella insurance, this policy kicks in when the main or primary policy’s liability component has been exhausted. So, when the primary liability insurance pays out, the umbrella policy takes over. It pays for the rest of the costs.

You can add an umbrella policy to any primary policy with just a phone call. Contact Associated American Insurance serving Manchester, NH today to further protect your finances.