What is an umbrella insurance?
Umbrella insurance is an extra insurance that protects you beyond the current limits and covers of other policies. Umbrella insurance may provide protection for property damage, injuries specific lawsuits, as well as personal liability issues.
What is the umbrella policy function?
An umbrella insurance policy will help safeguard your assets and future in two key ways:
- Umbrella insurance can offer protection in the event that you homeowner, auto or boats insurance policies are at their limits.
- Umbrella insurance covers certain claims that are not covered under other liability policies. This includes cases of the false accusation of arrest or libel or slander and liability insurance for rental units that you have.
What is umbrella insurance?
Umbrella insurance covers you beyond the limits of other insurance policies and for damages that might not be covered under insurance policies for liability. It generally offers protection against liability for:
- Property damaged by damage
- Certain lawsuits
- Personal liability cases
Who needs umbrella insurance?
Your thoughts are, “I have auto and homeowners insurance that covers some of these situations.” True! The umbrella insurance policy covers you beyond the coverage of these policies. It also covers certain scenarios that are not covered by other kinds of policies.
Umbrella Policy Coverage Examples:
Liability for bodily injury is the coverage for injuries suffered by another individual as a result of the incident. Examples include the expense of the medical bills or liability claims from injuries caused by
- A serious auto crash in which you’re the one at your own fault
- Harm caused to other dogs by your dog
- A guest at your home is
- The child of a neighbor’s neighbor slips when playing in your backyard
Property Damage Liability is a way to cover the cost of the loss or damage to someone else’s tangible property. Examples of this include the expense for the destruction of vehicles and other property caused by an automobile accident for which you’re at fault.
Renters of rentals can help you avoid the risk of liability you could be liable for as landlord. For example, they can help you pay for legal claims arising from:
- A person who falls on an injury in the pavement or the property you rent suing for compensation
- Your tenant’s dog biting someone else and you’re accountable for the harms
The coverage is available when you’re being in court for:
- Slander: An injurious spoken statement
- Libel: An offensive written declaration
- False arrests, detentions, or even detention
- Malicious prosecution
- Shock/mental anguish
What isn’t covered by the umbrella policies?
A general umbrella policy doesn’t provide coverage for:
- your injuries or damages caused to personal belongings
- an intentional or criminal act that causes harm to another
- responsibility you take on in the terms of a contract