While researching the different types of insurance available to you as a Manchester, NH resident, you may have come across umbrella insurance and begun to wonder why you had never heard of it. Umbrella insurance is beyond basic insurance, and some people never even consider purchasing it because they have no reason to. So, what exactly is umbrella insurance, and when is this type of insurance beneficial? Here is a brief overview to help you better understand this type of insurance coverage.
What is Umbrella Insurance?
Umbrella insurance is a supplemental insurance that kicks in once a person’s primary insurance has paid out the maximum amount. This could be their homeowners, boat, or even auto insurance policies. For example, if a person is a homeowner and a delivery person drops off an order at that homeowner’s house and is bitten by the homeowner’s dog, medical bills could be high. If the victim’s medical bills are $75,000, and the homeowner’s insurance policy maxes out at $50,000, the umbrella insurance would likely cover the extra $25,000.
Umbrella Insurance for the Wealthy
Low and moderate income individuals rarely need umbrella insurance. This is because well-off individuals are more likely to be sued for what they’re worth, which is substantially more than the average person.
As you can see, umbrella insurance is a supplementary insurance that most likely benefits wealthy individuals. Wealthy individuals are more likely to have expensive assets that make them more likely to be sued for large amounts of money that can easily deplete their primary homeowners’ insurance. Once the homeowners’ insurance has paid the maximum, the umbrella insurance will pay what’s left over. If you’re a Manchester, NH resident, and you need a new insurance agency, you should give us a call at AS Insurance Agency. Our company, AS Insurance Agency, has been in business for years, providing customers with the A-1 customer service that we hope to provide for you.