What is Umbrella Insurance?
Umbrella insurance serves as an additional piece of liability insurance. It is specifically created to help insulate you from significant liability claims as well as lawsuits. It also helps ensure your assets as well as your future income.
It works in conjunction with your homeowner’s insurance, auto insurance, and boat insurance policies. This added protection is meant to “kick in” in that event that the liability insurance limits on these other policies have been used.
What Will Umbrella Insurance Actually Cover?
Here are some additional details about what Umbrella insurance provides coverage for:
- Certain Lawsuits
- Damage to property
- Personal liability situations listed below.
“You might be thinking by now that you already have liability insurance with your home and auto insurance,” states best Allstate agency in Arlington Virginia company owner, Harvey Ostrow. “Umbrella insurance actually ensures you above and beyond those limits and additionally covers some situations that are not covered by these other types of insurance policies.” A top insurance agent in Laguna Hills California adds.
Here are some notable examples of the types of insurance coverage provided by a typical umbrella insurance policy and how they can protect you:
Bodily Injury Liability – covers the expenses involved of the damages to another individual’s body. Examples include the medical expenses as well as the liability claims as a resulting from:
- Injuries to other people resulting from a serious car accident where you are found to be at fault
- Harm resulting to others from the actions of your dog
- Injuries received by a guest visiting your home caused by a fall
- Injuries which are sustained by a neighbor’s child who happens to fall while playing ball in your back yard
Property Damage Liability – gives you coverage to pay for the cost of damage or loss to another person’s physical property. Examples of this include the expenses associated with:
- Damage to automobiles as well as other property resulting from a vehicle accident where you are found to be at fault
- Damage from claims incurred when your dog rips a neighbor’s pricey rug to shreds
- Accidental damage resulting to your child’s school because of momentary bad judgment
Owners of Rental Property – this helps protect you against the liability that you may endure as a landlord.
- A tenant trips over a crack in the sidewalk of on of your rentals and decides to sue you for their damages
- Your tenant’s canine ends up biting someone, and you end up being held responsible for their injuries
“This isn’t the place to skimp,” states best insurance agency Albuquerque owner. In today’s crazy lawsuit-rich society, most of us need to have this additional coverage.