Umbrella insurance offers tremendous protection by covering liabilities exceeding the limits of your underlying home, auto, or other insurance policies. It also covers the cost of specific legal issues. Although umbrella insurance generally covers everyone in the policyholder’s household, exceptions exist, so it is vital that you discuss your situation with your agent. If you are an Oklahoma resident needing an umbrella or other insurance assistance, contact the Insurance Source Solutions team.
Understanding How Umbrella Insurance Works
Umbrella insurance pays the excess amount when a policyholder’s liabilities exceed their underlying policy limits. It is relatively inexpensive since few claims exceed the underlying policy limits, but it is highly beneficial when someone is at fault for sizable injuries or damages.
Why Household Members Are Not Always Covered
Like an auto policy, umbrella insurance requires the policyholder to identify their household members when acquiring it. Identifying the covered household members allows the policy and premiums to be adjusted based on the members’ ages, occupations, hobbies, and other insurance policies.
Umbrella policies cover only the household members covered by the policy member’s policies, so your umbrella policy does not cover adult children or parents living in your household with separate auto policies. Likewise, the umbrella policy may exclude some liabilities for a child with a renters’ policy covering a college apartment.
Other exceptions exist, so it is important to periodically discuss your umbrella policy and household members with your agent to ensure you know who has coverage. Bundling your family’s policies with one agent helps ensure the agent knows about each household member’s policies and situation.
The Insurance Source Solutions Difference
At Insurance Source Solutions, we recognize your unique needs. Call (405) 348-5475 if you live in Oklahoma and want personalized solutions for your insurance needs.
