Franklin Insurance Agency

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

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What Is Umbrella Insurance? Three Things to Know

If you’re shopping for homeowners insurance, boat insurance, or auto insurance, you may be asked if you’d also like to purchase umbrella insurance. Many people don’t even know what umbrella insurance is and aren’t sure if it’s the kind of insurance they need or could benefit from.

We’re happy to answer these questions at Franklin Insurance Agency serving Rio Rancho, NM. Knowing how umbrella insurance can protect you can help you make an informed decision as you’re shopping for the right insurance policy. 

What Is Umbrella Insurance?

Umbrella insurance is a type of insurance policy extending the liability coverage offered under your homeowner’s, auto, or boat insurance. Umbrella insurance can help protect you from financial liability if a third party sustains bodily injury or property damage. Umbrella insurance is a separate policy that works with homeowners’, auto, and boat insurance. 

Should You Get Umbrella Insurance?

Umbrella insurance is a good idea for you if you have substantial wealth or sizable savings and other assets, own a trampoline or a swimming pool, coach kid’s sports, and are a landlord. Your insurance agent can help you decide if umbrella insurance suits you. 

How Can You Get Umbrella Insurance?

You can get an umbrella insurance policy you can trust by contacting Franklin Insurance Agency serving Rio Rancho, NM. Our insurance experts are here to help you get the insurance policy that will most benefit you. Umbrella insurance is complicated, so it’s best to work with an expert who can answer your questions and help you make an informed decision before getting this type of insurance. Call today. 

How much umbrella insurance do I need?

Umbrella insurance from Franklin Insurance Agency is an important type of liability insurance that can provide you with an extra layer of protection in case you are liable for a lawsuit. It can be helpful in cases where the damages or costs exceed what your current liability coverage can cover. Considering how much umbrella insurance you need based on your assets, income, and lifestyle here in the Rio Rancho, NM area is essential. 

When deciding how much umbrella insurance coverage to purchase, looking at your assets and liabilities is important. This includes property such as your home and vehicles and any other valuable possessions that could be taken in a lawsuit. It would be best if you also considered any debts, such as student loans or credit card debt. All of these items should be considered when determining the amount of coverage needed. 

In addition to considering your assets and liabilities, it’s also essential to think about potential risks associated with your lifestyle and activities. For example, if you are an avid golfer, you may want more umbrella insurance coverage since it can protect against claims related to golf-related injuries or incidents. On the other hand, additional coverage may be necessary if you own a business or rental property due to the increased risk of being sued by customers or tenants. 

When deciding how much umbrella insurance coverage to buy, remember that too little coverage could leave you unprotected in the event of a lawsuit, while too much could be overpaying for unnecessary protection. The best way to determine how much umbrella insurance is right for you is to work with an experienced agent here at Franklin Insurance Agency who can help assess your individual needs and provide tailored recommendations for coverage amounts. We proudly serve the Rio Rancho, NM area.

How Umbrella Insurance Works

Umbrella insurance is a type that works a bit differently from most other types of insurance policies. It works along with other policies to boost the amount of coverage that you have with those policies. If you already have policies for your home and vehicle, you might consider umbrella insurance to boost them. To get started with an umbrella policy, you can call us at Franklin Insurance Agency in Rio Rancho, NM. 

More Liability Coverage

Your home and auto policies each have different kinds of coverage within them. This includes liability coverage that pays for the medical bills of others after they are injured in an accident deemed to be your fault. Medical bills can be costly, so it’s a good idea to have plenty of liability coverage to pay them if needed. An umbrella policy adds coverage to your home and auto policies so that you can afford liability if an accident should happen. This protects you financially and gives you better peace of mind knowing that you are well-covered.  

Overage Payment

The first thing that happens after an accident is that the home or auto policy steps in to pay for the medical bills that are due for the other party. However, there may be an overage left over after that policy reaches its maximum. If there is, this coverage is then paid by the umbrella insurance policy. This coverage has extremely high maximums, so people will not likely owe anything after it has paid out for the medical bills. 

Get Better Coverage With Umbrella Insurance

If you want more coverage in case of accidents and already have home and auto policies, an umbrella policy can help. Call us at Franklin Insurance Agency in Rio Rancho, NM.

Umbrella Insurance Errors To Avoid

Franklin Insurance Agency serves the Rio Rancho, NM community and the surrounding areas. We work with multiple carriers in the region. This allows us to provide our clients with an assortment of options. For over 24 years, we have had families obtain the coverage they need to plan for the future.

Umbrella Insurance Errors to Avoid

Sometimes life throws unexpected situations your way. If you aren’t prepared, things can become even worse. Umbrella insurance is a policy that you can rely on during emergencies. Umbrella insurance covers you if you are involved in a serious home, auto, or commercial liability dispute. There are multiple reasons why someone may pursue litigation against you. Perhaps you are hosting a party at your Rio Rancho, NM home, and guests play in your swimming pool. Suddenly someone slips and falls, suffering a severe injury. Perhaps you are driving home from work, and you take your eye off the road to answer a call, but you cause an accident with multiple injuries. Maybe one of your employees is pursuing legal action against you, accusing you of slander and libel. These are common liability situations where your assets may be at risk. Umbrella insurance steps in once you have reached your liability limits. While looking over your policy, avoid these common umbrella insurance errors.

Many people believe that their assets aren’t valuable enough to obtain coverage. This is a mistake. If you are involved in a liability dispute, and you lose some of your assets, it can be a complicated and challenging process to replace them. Umbrella insurance can prevent you from losing everything you’ve worked hard for.

Franklin Insurance Agency will Help you Cover your Assets.

Visit our office to learn more information about umbrella insurance.

Why You Probably Need Umbrella Insurance

You may say you have personal liability coverage under your home or auto insurance. But ask yourself whether the coverage would be enough if you got into serious accidents? The answer is no. These liability coverages have limits that can be depleted in the event of a significant accident. That’s why umbrella insurance is crucial, as it bridges the gap when these other liability policies max out.

To that end, without umbrella insurance, any injury or damage beyond your other liability limits means paying them from your pocket. But with umbrella insurance, that means your assets are safe in case of substantial liability claims. That said, there are several reasons why you need umbrella insurance. Franklin Insurance Agency has prepared for you some of the main reasons. Let’s learn.

Protects your assets

If you have assets, then umbrella insurance makes sense for you. When you are in an accident and the damage goes beyond your primary insurance limit, you should cover the difference. For some, it would mean letting go of their savings or assets. But with umbrella insurance, you get covered against such occurrences.

Provides broad coverage

Unfortunately, we live in an era of lawsuits, where everyone wants to sue you for anything. Luckily, umbrella insurance provides claims that your other insurance coverages exclude, like slander, malicious prosecution, libel, false arrest, or imprisonment.

For peace of mind

Your assets should be your source of joy, not worry. Umbrella insurance makes you rest assured that your assets will not be interfered with in the event of expensive claims. 

It’s affordable

The umbrella insurance premiums are pretty affordable, as the insurance kicks in when your other liability coverages get exhausted.

Umbrella insurance in Rio Rancho, NM

There you have it. Anyone who is not ready to pay the extra liability claims or expensive lawsuits from the pocket has umbrella insurance to thank. Ready to purchase one in Rio Rancho, NM, and its environs? Contact us at Franklin Insurance Agency for an affordable quote.

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. 

People who may need umbrella insurance

Umbrella insurance is a different kind of insurance that works best for certain types of people. This is why companies like Franklin Insurance Agency in Rio Rancho, NM are available to provide more specific information about this kind of coverage and answer questions for those who may potentially need it. 

Umbrella insurance is generally used as additional coverage beyond what will be covered by auto insurance, homeowners insurance, and other regular types of coverage. Because umbrella insurance provides additional coverage in the event of a severe or devastating incident, it is best for individuals who are exposed to large amounts of risk and need greater coverage. For example, someone who drives a large vehicle long distances for commercial and business purposes has a much greater chance of being involved in a life-changing accident. They may need additional umbrella coverage in the event of a lawsuit. Others who are engaged in high-risk activities at their job or at home may also want to purchase umbrella coverage so that they would be protected from lawsuits that can range in the thousands or millions of dollars. Think of it as a way of protecting assets against large judgments, or protecting large amounts of assets in the event that some kind of major accident that will need to be paid for. This is why umbrella insurance is best for people dealing with high-risk situations or those who need coverage for large amounts of personal property. 

To learn more about how the specifics of umbrella insurance may be beneficial to you, contact Franklin Insurance Agency. Their agents have specific knowledge about the community of Rio Rancho, NM, and they can provide you with specialized guidance about whether you may need umbrella insurance or not.