Although umbrella insurance is designed to cover incidents that exceed a primary insurance policy, there are still limits to what an umbrella policy will cover. However, those limits are determined by your individual policy. Our Jacksonville, FL team at Skyline Insurance LLC can help business owners understand how umbrella insurance works.
What is Umbrella Insurance?
In short, umbrella insurance is extra insurance that kicks in once you’ve exceeded your primary insurance limits. However, the coverage limits will vary according to the limits of your umbrella policy. However, umbrella insurance does have coverage limits although it’s designed to work as extra insurance once you’ve exceeded the limits of your primary insurance.
What is the Maximum Limit for Umbrella Insurance?
Typical coverage limits for umbrella insurance start at $1 million but can be as much as $10 million. However, the limits typically fall between $1 and $5 million. However, the limits will depend on the insurance company. There are also aggregate limits for umbrella insurance.
What are Aggregate Limits for Umbrella Insurance?
Aggregate limits are the maximum amount an insurance policy will pay out, regardless of the number of claims or incidents. It’s considered the total payout an insurance company is willing to pay over the life of a policy, regardless of the number of claims or incidents. Most insurance policies have per-incident limits. However, umbrella insurance has aggregate limits as well. Umbrella insurance has aggregate limits that are equal to per-occurrence limits. It’s the opposite of insurance policies that have a maximum amount paid per incident or accident.
Give Us A Call
If you have questions about umbrella insurance and how much coverage would be beneficial to your unique situation, call us at Skyline Insurance LLC in Jacksonville, FL. We’d be happy to help you.