Franklin Insurance Agency

2345 Southern Blvd SE Ste C4,
Rio Rancho, NM 87124, United States

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What is Umbrella Insurance and How Does It Work?

Umbrella insurance is a specific type of coverage that protects you from being sued if the limits of your primary insurance are exceeded. In other words, umbrella insurance is an addition to your standard liability coverage. For example, if you injured someone with your vehicle and there is a substantial claim or lawsuit against you that is not covered by your primary insurance, umbrella insurance will cover it. Umbrella insurance will also cover the things that are not included in your standard policy, such as liability on rental properties, libel, and others. 

Typically, umbrella insurance covers the following: 

  • Liability coverage for the events that occur on and off your property
  • Additional protection above your standard auto coverage
  • Protection for personal injury claims, including wrongful eviction, slander, false arrest, and libel
  • Legal defense costs, including court costs and attorney’s fees
  • Protection for claims of property damage or personal injuries caused by your or your family member, as well as damage caused by hazards, for which you are found liable.

How Does It Work?

Depending on the type of claim against you, your auto, home, renters, or boat insurance will be utilized first. Once the basic liability limit is reached, umbrella insurance will cover the remaining costs. Most insurance companies require you to have a home, auto, or renters liability insurance that is equal to the amount of umbrella insurance deductible. 

Having umbrella insurance is not a requirement – it is your personal choice. However, if you want to have the additional protection of your property and yourself, it is the type of insurance you should have. If you are a resident of Rio Rancho, NM or any other neighboring town and you need umbrella insurance, our Franklin Insurance Agency is here to help. Our fully trained insurance agents with decades of experience will answer all your questions and help you find an insurance policy you deserve. Visit our office in Rio Rancho, NM or call Franklin Insurance Agency to find out what we can do for you.