Umbrella insurance is intended to provide extra liability protection for you. There are many instances where a liability claim can easily exceed the protection offered by a standard policy for homes, automobiles, boats, or other toys.
Having umbrella insurance in place not only provides extra security but it gives peace of mind. Anyone curious about umbrella insurance and how it works should keep reading to get details.
What Is Umbrella Insurance?
An umbrella insurance policy gives the policyholder extra liability protection beyond their homeowner, auto, or other insurance. This coverage pays for property damage, injuries, and general personal liability situations. It also covers legal expenses that could arise from lawsuits.
In situations where you have regular insurance, you might not have the full protection you need. There are many instances where having umbrella insurance in place helps prevent significant financial losses in the event of an accident or related to some negligence.
This can mean protection from anything like a slippery surface causing a neighbor to slip, to being involved in a serious car accident causing injuries to the others involved. This policy not only protects the policyholder but also covers other members of the household, so if one of your kids is involved in a car accident, for instance, they will be protected as well.
How Does Umbrella Insurance Work With My Homeowner and Auto Policies?
Umbrella insurance works essentially the same way for both home and auto policies. It’s like an added piece of coverage that kicks in once the liability limit of the original policy (either home or auto) is exceeded. The umbrella policy then starts to cover the remaining difference your home or auto policy won’t or can’t cover.
How Much Umbrella Insurance Do I need? What Will It Cost Me?
For other situations, umbrella insurance coverage offers assistance with legal fees and even various claims like false imprisonment and landlord liability. Those who have specific activities on their property or other instances where there’s an excessive or potential risk should consider an umbrella policy.
These policies usually cover up to $1 million in liability and only cost a few hundred dollars per year to maintain coverage. It’s a smart investment in protecting one’s financial future and assets. Higher limits than $1 million are generally available to everyone and can be a cost-effective way to increase your protection.
Who Needs Umbrella Insurance?
Anyone who has a certain amount of potential risk should consider purchasing an umbrella policy. This type of coverage will offer protection from claims exceeding any coverage already in place for various types of insurance.
High Exposure to Liabilities
Sometimes people are susceptible to liability claims more often than others. Everyone has a unique situation, and umbrella insurance helps add a layer of protection from certain risks. Here are some instances where umbrella insurance comes in handy.
- Underdeveloped property owners – If you have wooded areas or sections where there’s water or rugged terrain is a risk to people crossing the property; you’ll want to consider umbrella insurance. You never know when someone can get hurt.
- Recreational devices – Many recreational products and vehicles increase the risk of a liability claim. Some of these items include ATVs, trampolines, boats, and more.
- If you take part in certain high-risk activities or hobbies, you’ll be safer to invest in an umbrella policy.
- If you frequently have parties or gatherings, this type of insurance is a must.
- People with pets or animals should consider protecting themselves in the event their pet injures someone.
- A parent with a teen driver on the road may want extra protection.
- Attractive hazards – if you have a pool, trampoline, or other fun but potentially dangerous equipment at your home.
- Umbrella insurance is a good idea if you travel often.
Anyone finding themselves with any of these factors should speak with a knowledgeable insurance agent about security umbrella insurance to mitigate risk.
Get Umbrella Insurance if You are Underinsured
Although you might have insurance in place, there are times where the coverage isn’t enough. However, you can easily get an umbrella insurance policy that will protect you in the event of a claim, so you don’t have to pay the remainder of the claim out of pocket.
Anyone needing extra coverage can avoid the lost sleep and worry when they purchase an umbrella policy for their home, auto, and more. It’s one of the best insurance tools on the market today.
Examples of Umbrella Insurance in Action
An example of a time when umbrella insurance comes in handy is if someone falls or slips on your property and sues for the amount of the damages. If the damages are $500k, but your home policy provides up to $250k, the umbrella policy covers what your home policy won’t.
Similar to this, if a family member (or your pet) causes some kind of injury to another person and they sue you for it, requesting you to pay for their medical bills, umbrella insurance can cover those costs.
Summary
There are many instances where one would need umbrella insurance protection. If you think you could benefit, now is the time to speak with an agent before risk finds you. You’ll have more security and be able to protect yourself and your family from the unknown. Our agents at Doyle & Ogden Insurance are ready to help you choose the right policies for your needs.