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  • Writer's pictureCharlotte Burr

What is an Umbrella Policy?


Umbrella insurance is extra liability coverage that provides protection beyond your initial insurance limits. Umbrella insurance is an extra layer of liability coverage that extends beyond the limits of your auto, homeowners, or renters insurance. For example, let's say you were involved in a car accident that you are liable for and total damages and injury will cost $500,000. Your current auto policy limit is $300,000 so instead of paying the remaining $200,000 out of your own pocket, an umbrella policy would help you cover the costs that went over your limit.


The average limit for an umbrella policy ranges anywhere between $1,000,000 and $10,000,000 depending on how much coverage you want. These limits are relatively high because umbrella policies often cover legal fees, settlements, and even defamation claims, offering comprehensive protection against various scenarios.


Do I need an umbrella policy?: You are probably thinking that you already have homeowners and auto insurance so there is no need for an umbrella policy. Although it is good that you are already covered, it is smart to have an umbrella policy as a backup for when your home or auto insurance reach their limits. If someone were to be hurt on your property or by an accident you were involved in you do not want them to go after your assets.


Still feeling unsure? Let AZ Insurance Team do the umbrella policy shopping for you! Give us a call today. (480)-535-5709.


Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.

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