You hear the term in commercials all the time – “we offer home, auto and umbrella insurance!” The first two are pretty self-explanatory, but what is umbrella insurance?
Umbrella insurance is simply extra liability insurance on any insurance plan that you may have. It’s usually used to help protect you against any major claims and lawsuits, which helps protect your assets and ultimately, your future.
How does it work?
Umbrella insurance protects you in two ways. First, it provides additional liability coverage above the limits of your homeowners, auto and/or boat insurance policies. The protection provided by your umbrella insurance would “kick in” when the liability on your other policies is exhausted.
Second, umbrella insurance provides coverage for claims that may be excluded by other liability policies including false arrest, slander, rental properties, etc.
So what exactly does it cover?
Umbrella insurance will cover injuries, such as bodily injury liability, which covers the cost of damages to another person’s body. An example of this would be the cost of medical bills or liability claims due to an auto accident where you are at fault.
It also covers damage to property. Umbrella insurance covers the cost of damage or loss to another person’s property, like the costs associated with a car accident or accidental damage of property by your child.
If you own a rental unit, umbrella insurance will also cover you! It helps protect you against liabilities you may have as a landlord. So, if someone were to injure themselves on your property and sue you, or a tenant’s dog bites someone, you would have additional coverage.
Umbrella insurance can also protect you against other situations that you may be sued for, such as slander or libel statements either spoken or written, false arrest, and malicious prosecution to name a few.
Do you need it?
Umbrella insurance is an inexpensive way to protect your assets. It’s an extra coverage plan that goes above and beyond what you already have, sort of like a safety net. If your lifestyle matches the coverage that is provided by umbrella insurance, it can be a great way to insure your family’s future.
To find out more about how Umbrella Insurance can protect you and your family and to get a free, no obligation quote, call one of our knowledgeable insurance agents today 616-949-9000 or request your free insurance quote online!
