What is an Umbrella Insurance Policy?
Umbrella insurance is extra liability insurance that is designed to help protect you from major claims or lawsuits that surpass your current policy limits, and as a result it helps protect your assets and your future.
It provides additional liability coverage above the limits of your homeowners, auto, and boat insurance policies. This protection is designed to kick in when the liability (policy limits) on the other policies has been exhausted.
Are you still unsure of what an umbrella policy covers? Let’s dive a little deeper,
Umbrella insurance provides coverage for:
You may be thinking, but don’t I have auto and homeowners’ insurance to cover this?
While that is correct, there are some situations that are not covered by your home and auto insurance policies. An Umbrella insurance policy insures you above and beyond the limits of those policies and covers some situations that aren't covered by home and auto policies.
Below are types of coverage provided by an umbrella policy and how it protect you:
Bodily Injury Liability – covers the cost of damages to another person's body. including the cost of medical bills and/or liability claims as a result of:
Property Damage Liability – covers the cost of damage or loss to another person's physical property. Examples include the cost associated with:
Rental Property Owners – an umbrella policy helps protect you against liability as a landlord.
Examples of liability claims that result from:
Coverage is also provided should you be sued for the following (yes folks, these really do happen) -
Want an example of an Umbrella Policy kicking in?
Imagine you were in an at fault auto accident and the cost of the injuries you are deemed responsible for totaled $450,000. Now, your current Auto insurance policy has a Bodily Injury limit of $300,000. Your auto policy will only cover $300,000 of the injuries.
Where does the additional $150,000 come from? If you have an umbrella policy (depending on the limit you choose) – it will pay the additional $150,000. If you don’t have this type of policy, the injured party could go after your personal assets for the difference.
We hope you can see the value of Personal Umbrella Policy, if you have questions or would like a quote please call our office at (337) 656-2890.