Everything You Need To Know About Umbrella Insurance.
If you have ever looked into any insurance website you may have come across a policy that is called an “Umbrella Policy.” Was your first thought, “Why would I need to have insurance for an umbrella?” That is a great question! Umbrella Insurance has nothing to do with an actual umbrella at all! In fact, Umbrella Insurance is just extra liability insurance.
Let’s say you already have a decent auto insurance policy and you get into a nasty accident. You are okay but the passenger of the other car was hurt pretty bad. If they choose to sue you your current policy may not be enough to cover for your loses. So Umbrella Insurance gives you two things:
- It provides you with additional liability coverage in regards to your homeowners, auto and boat policies. Once your liability has been all used up that’s when it will kick in.
- Can cover other claims that may not fall into any other liability policy you have. This can be from a false arrest, libel, slander, and liability coverage on rental units you own.
What does umbrella insurance cover?
If you are still scratching your head as to what umbrella insurance actually offers you let’s talk a little bit in detail about what you can expect. Umbrella covers:
- Personal liability situations (seen below)
- Certain lawsuits
- Damage to property
Are you thinking, “I already have a homeowners policy that covers all of that!”? Yes, you are right but when your coverage is exhausted then umbrella insurance will start to kick in. Get an umbrella insurance quote today!
Here are some more examples of how it can help you:
Bodily Injury Liability – covers the cost of damages to another person’s body. Examples include the cost of medical bills and/or liability claims as a result of:
- Injuries to other parties due to a serious auto accident where you are at fault
- Harm caused to others as a result of your dog*
- Injuries sustained by a guest in your home due to a fall
- Injuries sustained by a neighbor’s child who falls while playing in your yard
Property Damage Liability – covers the cost of damage or loss to another person’s tangible property. Examples include the cost associated with:
- Damage to vehicles and other property as a result of an auto accident where you are at fault
- Damage claims incurred when your dog* rips a friend’s priceless oriental rug to shreds
- Accidental damage to school property caused by your child
Owners of Rental Units – helps protect against liability that you may face as a landlord. Examples include the cost of liability claims as a result of:
- Someone tripping over a crack in the sidewalk of your rental property and suing you for damages
- Your tenant’s dog* biting someone and you being held responsible for the injuries
Coverage is also provided should you be sued for:
- Slander – injurious spoken statement
- Libel – injurious written statement
- False arrest, detention, or imprisonment
- Malicious prosecution
- Shock/mental anguish
- Other personal liability situations
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