You might not be familiar with secondary insurance, umbrella insurance. The term secondary or secondary insurance refers to a type of insurance policy added to an existing primary policy. You must have the primary policy to purchase the secondary type.
Umbrella insurance provides liability coverage over and above the liability provisions in your homeowner’s, renter’s, auto, boat, RV, or business insurance. If you own any of those primary insurance types, you can add an umbrella policy from Genesee Valley Agency.
Since you already have liability coverage, you probably wonder why you would want more of it. The liability coverage on those primary coverages only provides limited coverage. You can choose the coverage on an auto, boat, or RV policy, but your home coverage provides a percentage of your home’s value as to liability coverage. Typically, this is about ten to twenty percent. That means if your Arkport, NY home value is $100,000, your liability coverage is $10,000 to $20,000.
While that might sound like a lot, imagine that an accident occurs at your home. It injures three people. Perhaps a fire breaks out or pushes someone else into the swimming pool, striking a third person. The average hospital stay costs about $15,000. Your home insurance could not cover all three individuals. In fact, without an umbrella policy, you would end up paying for the other two people’s bills out of pocket.
Umbrella insurance costs little but provides vital coverage. Most individuals can easily afford a half-million- or million-dollar policy. Contact Genesee Valley Agency, serving the Arkport, NY area, to learn more about how you can protect your financial health with umbrella coverage.