Whether you’re a homeowner, automobile owner, or business owner, umbrella insurance can provide optimal protection for your assets. Understanding when umbrella insurance applies and what it covers can help you decide if it’s the right choice for you. Umbrella insurance does not replace your existing coverage. Instead, it steps in when your primary policies reach or exceed their limits. Working with the right team can help you understand why this type of coverage is such a powerful safety net. If you’re located in Reno, NV, and want to learn more about umbrella insurance for your investments and assets, Hinman & Associates Insurance is here to guide you every step of the way.

How Umbrella Insurance Works After Primary Liability Limits Are Reached

Umbrella insurance is activated only after the liability limits on an underlying policy are fully used. These policies can include auto insurance liability, homeowners or renters insurance liability, and commercial or general liability insurance.

When a Claim Exceeds Standard Limits

Umbrella insurance applies to claims that are already covered by your primary policies but exceed their limits. It does not cover claims excluded by your primary policies. Common scenarios where umbrella insurance kicks in include:

• Serious car accidents resulting in major injuries
• Slip-and-fall accident claims occurring on your property
• Dog bite injuries
• Lawsuits involving property damage or bodily injury

Meeting Underlying Policy Requirements

To activate umbrella insurance, you must first meet the liability limits of your primary insurance policies. Once those limits are reached, umbrella insurance provides additional coverage.

Understanding what umbrella insurance protects and what it does not cover is essential for anyone with investments or assets. Whether you’re a homeowner, a business owner, or someone looking to protect high-value assets, we can help. To find out if umbrella insurance is the right choice for you, contact Hinman & Associates Insurance in Reno, NV, today for a consultation.