It’s not uncommon to hear about individuals losing court cases in which they’re ordered to pay damages. For instance, someone who caused a car accident may be ordered to pay the injured party’s bills that aren’t covered by the at-fault party’s liability coverage. However, when those bills exceed what the person can realistically pay, that can lead to additional legal troubles. However, if the person already has umbrella insurance from a company like Windgate Insurance Agency Inc. in New Windsor, NY, they can avoid these issues.

Umbrella Insurance: Covering What Your Other Insurance Won’t

Umbrella insurance is a policy that provides coverage when your other relevant insurance policies reach their limits. For example, suppose your auto insurance policy’s liability coverage isn’t enough to cover all of the money that you’ve been ordered to pay someone. In that case, your umbrella insurance policy can kick in and cover the rest. It won’t cover your expenses if you were at fault in an accident, but it can cover money you’ve been ordered to pay someone else, providing a sense of relief.

Umbrella insurance policies have their own limits, and the extra coverage you get won’t exceed the maximum amount on the policy. Fortunately, an umbrella insurance policy is typically more affordable, so obtaining a policy that might cover $1 million or more may be more feasible than you thought.

You never know when you’ll need that extra protection. Contact an insurance company like Windgate Insurance Agency Inc. in New Windsor, NY, for more information on qualifying for and buying an umbrella insurance policy.