Understanding Umbrella Insurance

Whether you are in Baton Rouge, LA or Boston, MA, umbrella insurance offers an extra safety blanket for your savings and assets in the event that you are sued for damages that exceed the limits of your liability insurance coverage for homeowners insurance, car insurance, and other coverage types. Cordell Insurance, conveniently located in Baton Rouge, wants to be your go-to stop for any umbrella insurance needs. 

Does Everyone Need Umbrella Insurance?

Typically, umbrella insurance is purchased by individuals that own property, have significant assets, or participate in activities that increase their risk of being sued to include coaching youth sports, being a landlord or volunteering. At the end of the day, umbrella insurance provides extra liability coverage once the limits of the insurance policies that you already hold have been exhausted. Additionally, umbrella insurance covers incidents that typical insurance policies don’t include slander and libel. 

How Does Umbrella Insurance Work?

Let’s say you are involved in an at-fault accident where you roll through a stop sign and hit another vehicle which leads to damage to the vehicle and also significant injuries to two of the occupants. If the total damage is $200,000, but your liability coverage is only $100,000 then umbrella insurance will kick in to cover the rest so that you don’t have to pay anything out of pocket.

Umbrella insurance is typically sold in bundles of $1 million and is relatively inexpensive for the amount of coverage offered. In order to purchase umbrella insurance you must already have auto or property insurance and have a minimum amount of coverage on these insurances before being eligible for an umbrella insurance policy. At Cordell Insurance in Baton Rouge, LA our friendly and professionally trained team is ready and willing to answer any of your questions.