Umbrella insurance is a type of personal liability coverage that provides an extra layer of financial protection when the limits of your auto, homeowners, or renters insurance have been exhausted. It’s designed to step in and help cover costs that go beyond what your primary policies can handle. This can include damages from major car accidents, serious injuries on your property, or even certain lawsuits. With umbrella insurance, you won’t have to worry about losing your savings or assets due to an unexpected, high-cost liability claim.

How Umbrella Insurance Works with Primary Coverage

This type of coverage works in conjunction with your existing insurance policies. Suppose you’re responsible for an incident and your main policy pays out up to its maximum limit. In that case, your umbrella policy will cover the remaining expenses, up to its coverage limit. It serves as a financial safety net, providing you with peace of mind in the event of an emergency. Umbrella insurance can also cover situations your primary policies may not address, such as legal fees for libel, slander, or false arrest claims.

Why Umbrella Insurance Isn’t Just for the Wealthy

Many people assume umbrella insurance is only for high-net-worth individuals, but it’s valuable for anyone who owns property, drives regularly, or has assets they want to protect. Accidents happen, and when they do, they can lead to lawsuits or damages that exceed standard coverage. Without an umbrella policy, you could end up paying out of pocket for court judgments, legal defense, or medical bills that your basic policies can’t fully cover. This extra protection ensures you don’t risk your financial future.

Typical situations where umbrella insurance can make a big difference include serious motor vehicle accidents, slip-and-fall injuries on your property, dog-related incidents, boating or swimming pool accidents, and even reputational lawsuits like slander or defamation. If any of these result in a legal judgment or settlement that exceeds your homeowners or auto insurance limits, your umbrella policy fills in the gap. It helps protect your home, savings, investments, and other assets from being used to settle large claims.

Find the Right Umbrella Policy with Koda Insurance

At Koda Insurance Services, we help individuals and families find the right umbrella insurance to match their unique needs. Our team takes the time to understand your lifestyle, evaluate your risks, and recommend a policy that adds meaningful protection. If you’re looking to enhance your current coverage and protect your financial well-being, please call us today at (619) 600-5550 or fill out our online form. Let’s find a solution that works for you and gives you peace of mind.