Umbrella insurance provides you added financial protection above what you already have in a home insurance, auto, or RV policy. The insurance industry refers to this type of policy as an add-on policy. You must already own the main policy type to purchase an umbrella policy from Anthony Catalfamo Agency LLC of Burnt Hills, NY.
Umbrella insurance earned its name because it protects your finances on that rainy day when an accident occurs that you are liable for causing or you incurred liability for because it happened on your property or equipment. While a home or auto policy provides a small amount of liability coverage, the umbrella policy adds coverage to the maximum liability policy.
If an event occurs that requires payment from the main policy that maxes it out, but the medical costs and court settlement costs have not yet been paid, the umbrella insurance pays the rest up to the maximum on that policy. That means if your home policy provides $100,000 of liability coverage. Still, an accident occurs at your home that injuries two people, and the medical costs tally to $250,000, the first $100,000 comes out of the home policy. It pays out the maximum. The umbrella policy you purchased for coverage of $250,000 kicks in and paid the other $150,000 of the medical costs. This saves you from needing to dip into your own pocket to pay the rest of the two individuals’ medical bills.
Some individuals need an umbrella policy more than others. If you have a swimming pool or trampoline at your home in Burnt Hills, NY, this increases the risk of an accident, and your insurance agent at Anthony Catalfamo Agency LLC will recommend you obtain an umbrella policy to cover yourself for that additional risk. They will also recommend this coverage if you have ATVs, motorcycles, go-carts, boats, or other watercraft.