Insurance 101

When you buy a car insurance policy, you’re getting financial protection for both your vehicle and damages caused by your vehicle in case of an accident or injury. For example, if you’re involved in an accident, collision insurance would help cover the cost of the repairs. Your insurance would kick in after you’ve met your deductible and cover you up to the limit of your policy.

Homeowners insurance is protection for your home that helps cover repairs or replacements to your home’s structure, belongings and even covers you if you’re liable for injury to another person when they’re on your property or accidental damage to their property. For example, if your home is damaged by a fire, your policy would likely cover the cost of the repairs (once you’ve met your deductible).

A standard home insurance policy includes essential coverages that offer protection from a specific set of common damages. Just as every home is unique, so is every home insurance policy. And you’ll have the option to customize and purchase additional coverages as they fit your needs.

Think of umbrella insurance as an additional financial safety net on top of your existing coverage. Sometimes the liability limits in your auto, home, boat, or recreational vehicle policy are not enough to cover the damages from an accident or judgments from a lawsuit. An umbrella policy protects your assets and future earnings from being at risk should your other liability limits not be enough.

For example, if you were in an accident that caused $1,000,000 worth of damages but your auto policy only covered up to $300,000, you’d be responsible for the remaining $700,000. But if you have an umbrella policy, you get an additional level of coverage that’ll help cover that remaining amount.