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Christensen Insurance Group

765 E 9000 S Suite A2
Sandy, UT 84094

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What Exactly is Umbrella Insurance?

We’ve all heard of the basic types of insurance coverage, like home, life, renter’s, and homeowners, but for some people, umbrella insurance may be a new type. Even if you’ve never heard of umbrella insurance before, it’s a popular type of insurance that has been around for a while. What exactly is umbrella insurance? Here is an overview so you can better understand this type of insurance. 

Supplemental Insurance

Umbrella insurance, also known as excess liability insurance, is not a standalone type of coverage. This type of insurance is purchased as a supplement to homeowners, auto, or boating insurance. If a person covered under umbrella insurance files a claim with their auto, homeowners, or boating insurance, and after paying out the maximum, there is still a remaining balance when it comes to damages, umbrella insurance will kick in and pay the difference. 

Insurance for the Wealthy?

Umbrella insurance policies are usually purchased by individuals in higher income brackets. This is because if a wealthier person is sued, they’re worth significantly more than the average person. The average person is worth less, so their primary insurance will typically cover any liability if they’re sued. However, wealthier individuals might be sued for hundreds of thousands of dollars, well more than the average person. This is why umbrella insurance is so important for some people. 

Suppose you’re in need of a new insurance provider and you’re a Sandy, UT resident. In that case, we at Christensen Insurance Group accept new customers and cover the Sandy, UT area. Call us today, and one of our friendly and professional agents will be more than happy to provide you with a quote and answer any questions you may have. At Christensen Insurance Group, we pride ourselves on providing excellent customer service and coverage.