Understanding Umbrella Insurance

Most people understand that insurance is necessary to protect you financially from the expenses of accidents or disaster. What many people do not realize, though, is that some accidents and disasters can exhaust an insurance policy. In those cases, the individual is still left financially vulnerable. At Five Star Insurance Agency serving Fords, NJ, we love taking the time to educate our clients on how they can better protect their financial health. Keep reading to learn about umbrella insurance. 

What is Umbrella Insurance?

Umbrella insurance is a type of insurance policy that can be purchased to supplement already existing policies. An umbrella policy can be very flexible and can be customized to each individual’s needs. Basically an umbrella policy is designed to kick in in the event that existing policies do not fully cover the expenses incurred during an incident. This could include auto accidents, liability cases, damage to your home or business as well as others. To best understand how an umbrella policy can protect you, you should sit down with an insurance representative to discuss your options.

Who Needs Umbrella Insurance?

Umbrella insurance can be a good investment for anyone, but individuals with a great number of assets to protect should definitely consider an umbrella policy. These individuals are more at risk of losing financially especially in a liability case. It is also a good idea to get an umbrella policy if you operate a high-risk business or if you use your property for large scale entertaining. Individuals with extensive medical issues may also benefit from this type of policy. 

If you would like to learn more about umbrella insurance, and how it can help protect your financial security, please contact our friendly staff at Five Star Insurance Agency, serving Fords, NJ. We will be happy to answer your questions.