An umbrella insurance policy provides additional coverage, above and beyond that offered by your home or auto insurance. For example, it offers protection if a driver gets into a car accident for which he or she is found responsible. It also covers damages resultant from suits.

The Insurance Bureau of Canada defines an umbrella policy as: “A special form of liability policy designed to protect the insured for certain unknown contingencies over and above the normal coverages and to provide excess insurance.”

Should I consider an umbrella insurance policy? 

Investopedia explains that umbrella insurance policies are especially useful when an individual is sued, and damages exceed the original policy’s coverage. The umbrella insurance policy would cover the excess amount, not included under the standard policy in question.

In general, the higher your risks, the more insurance coverage you want to opt for, which holds true for customers considering umbrella insurance policies. Investopedia advises that individuals who have significant assets, and thus are at a heightened risk of being sued, should consider an umbrella insurance policy.

Are there ways to save on an umbrella insurance policy’s premiums?

Yes—one option is combining policies. This involves the customer getting their umbrella insurance policy from the same insurer who issued their standard auto and home insurance plans.

If you are interested in learning more about the benefits of umbrella insurance policies, or want answers to your home, auto and business insurance questions, contact Fundy Mutual. We have been serving the insurance needs of New Brunswickers for over 70 years. Providing and maintaining protection for the people in our communities is our number one priority.

UPDATE:

For more information, check out  https://www.bankrate.com/insurance/car-and-home-insurance-bundle/