L & S Agency Inc.

3868 S Park Ave
Blasdell, NY 14219

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Featured Insurance Blog

What is Umbrella Insurance?

At L & S Agency Inc. in Buffalo, NY, we offer many types of insurance, including umbrella insurance. Umbrella insurance is designed to provide extra protection when you reach the coverage limits of your standard policies. 

What is Umbrella Insurance? 

Umbrella insurance is also known as catastrophe insurance. It’s designed to protect you from catastrophic events, which can be very costly. It provides liability protection beyond your regular home and auto policy and also covers situations that are excluded by these policies.

Umbrella policies are typically sold in increments of $1 million, up to $15 to $20 million.  

How Does Umbrella Insurance Work?

If you reach the coverage limit on your standard home or auto policy, umbrella insurance will cover the difference up to its coverage limit. To qualify, you must have a homeowners and auto policy that meets the requirements of the umbrella policy. 

Let’s take a look at an example of how this type of policy works. You are involved in a major auto accident that involves ten vehicles. You are determined to be the cause of the pileup. 

The total cost of the accident is $1 million. However, your auto policy only provides coverage up to $500,000. In this case, the umbrella policy will cover the gap between your liability and your auto coverage limit, which is $500,000.

What Does an Umbrella Policy Cover? 

An umbrella policy will generally cover anything that your existing home or auto policy covers, with much higher coverage limits. In addition, an umbrella policy covers legal expenses for liability, slander, false arrest, and malicious prosecution. 

Reach Out To Us

If you need umbrella insurance in Buffalo, NY, contact us at L & S Agency Inc. Our friendly agents will discuss your needs and help you select the best policy for your needs.