Category: Umbrella Insurance

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. 

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.