Umbrella insurance in Fords, NJ, is often considered essential for high-net-worth individuals or anyone looking to protect their assets. These policies provide additional coverage when standard insurance policies fall short, ensuring your assets are safeguarded and you don’t have to pay out of pocket for expenses like legal fees or medical bills.

Standard Coverage

Umbrella insurance primarily provides coverage for liability lawsuits. For instance, if someone is injured on your property and sues you for medical bills, lost wages, or other damages, your homeowner’s insurance will typically cover the initial costs. However, if the settlement or medical expenses exceed the limits of your homeowner’s policy, umbrella insurance can step in to cover the remaining amount.

For example, if medical bills total $200,000 but your homeowner’s insurance only covers $150,000, your umbrella policy will pay the remaining $50,000. This ensures you’re not left with the financial burden. Additionally, umbrella insurance may cover the cost of a legal team, depending on the specifics of your policy. An agent at Five Star Insurance Agency can help you understand the details of your coverage.

Property Damage

Umbrella insurance typically does not cover property damage. Instead, it focuses on liability situations. For example, if you’re involved in a car accident, your policy may cover the other party’s property damage and medical bills, but will not usually cover damage to your own vehicle.

Understanding how umbrella insurance works is crucial to ensuring you have the right coverage. If you’re concerned about property damage and need additional protection, we can help you find the policy that fits your needs. Contact the agents at Five Star Insurance Agency today. We proudly serve the Fords, NJ, area.