Irrespective of how awkward it may sound, umbrella insurance coverage is essential for everyone. The problem is not everyone can identify the usefulness of this type of coverage or even define what it’s about. So what does this coverage entail, and how can it benefit you and your family?
Keep reading for more details on umbrella insurance coverage.
What Is Umbrella Insurance?
Umbrella insurance provides “excess liability insurance.” It is basically more coverage, in addition to the liability insurance currently included in your properties. Such properties could be your vehicle, home, and watercraft insurance policy.
It is used in situations where medical costs or damages might be more expensive than your “standard” coverage. You can think of it as asset protection. It can save you from losing your assets to pay for a court judgment against you.
An umbrella policy aims to help in the event of a catastrophic accident for which you have financial responsibility.
What Does Umbrella Insurance Cover?
Umbrella insurance coverage will cover various expenses, such as medical bills, legal fees, and other charges. This holds for car accidents, injured guests at your home, and even dog bites.
It protects situations that your home and auto insurance don’t, such as being sued for libel, defamation, or slander. Below are some instances where umbrella insurance comes in:
- In a serious automobile or boat accident where you are at fault: Bills from an auto or boating accident can quickly mount up, but this insurance supplements it.
- If your dog bites someone: Dog bites typically get coverage from a home insurance policy. However, if someone sues you for an amount exceeding the limits of your homeowner insurance, your umbrella policy would pay.
- When you hit a building with your car: It covers the property damage left over from a vehicle insurance policy if your auto insurance limit is insufficient.
- If you unintentionally cause someone damage: After your homeowner liability insurance has paid out, your umbrella insurance will.
