What is an umbrella policy?

An umbrella policy is a type of insurance coverage in Iowa that provides an extra layer of protection to an individual’s existing liability insurance policies. An umbrella policy acts as a “safety net” to an individual’s existing auto, homeowners, and other liability insurance policies. An umbrella policy protects the insured from claims that exceed the limits of their existing policies. For example, if an individual is involved in a car accident that results in more damage than their auto policy covers, an umbrella policy will kick in and cover the remaining costs. Likewise, if an individual is found liable in a lawsuit and the costs exceed their homeowners’ insurance limits, their umbrella coverage will provide the extra protection that is needed. Umbrella policies are designed to protect individuals from financially devastating accidents where their existing coverage falls short. It is important for Iowa residents to review their existing coverage limits and consider taking out an umbrella policy if their current coverage does not provide sufficient protection. An umbrella policy can be relatively inexpensive and provides the peace of mind that comes with knowing you have extra protection in place in the event of an accident.

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