Umbrella insurance increases your personal liability insurance, adding another layer of protection beyond your existing insurance plans. Your homeowner’s, car, and boat insurance policies may not offer enough personal liability insurance to protect your assets if you are being sued. Umbrella insurance increases the amount of liability insurance available to you in this circumstance to protect your future.
What Does Umbrella Insurance Cover?
Umbrella insurance covers incidents that require additional funds to pay for a liability case. Additionally, umbrella insurance applies to some situations that are not covered in your existing home, car, or boat insurance policies.
Examples of Covered Events:
- Property damage
- Injuries/Medical bills
- Some lawsuits
- Personal liability situations like libel and slander
Example of Umbrella Insurance for Homeowners
It’s easier to understand how umbrella insurance works by using some real life examples. Below is a possible scenario where umbrella insurance protects the homeowner:
Your child’s friend comes for a play date and falls out of the treehouse in your backyard while you are inside making them a snack. The child suffers from significant injuries, and their family decides to sue you for negligence to the tune of $150,000. This money will help them cover the medical expenses incurred from the accident. Your homeowner’s personal liability coverage is $100,000. With an umbrella policy, the remaining $50,000 will be covered, and you’re off the hook for a huge expense you would be forced to pay without the extra policy.
What Doesn’t Umbrella Insurance Cover?
Umbrella insurance will not cover injuries to you or damage to your own property. It does not cover business related activities either. Additionally, it will only cover accidents or incidents that happen after your policy takes effect. When you speak to an agent about an umbrella policy, be sure to list all of your assets including cars, homes, and watercraft to ensure all assets are covered within the policy.
Who Needs Umbrella Insurance?
Anyone with assets like a home, vehicle, or watercraft will benefit from having an umbrella policy. There are some individuals who are more at risk and should definitely have the extra coverage. This includes:
- Landlords – more opportunities to be sued by tenants or those visiting tenants
- Dog owners – particularly owners of breeds known to be aggressive or known to bite
- Athletes or Sportsmen – taking part in sports like skiing or shooting provides more opportunities to accidentally harm others
- Active reviewers of products and businesses – open to liable or slander suits
- Homeowners with dangerous items on their property like pools or trampolines – more likely injuries to others can happen
- Board members – you can be personally sued if the organisation is sued
- People who own a large amount of assets and/or have a significant savings in the bank – more finances for those suing you to “go after” in a lawsuit
Umbrella Insurance with Ianniello Insurance Agency
No matter who you are, you can benefit from adding an umbrella policy to your overall insurance coverage. At the end of the day, accidents do happen, and property owners should be prepared to face costly claims.
With an umbrella policy, you are taking an important step to further protect your assets and financial future. If you’re ready to consider an umbrella policy, we are here to help you discover the right amount of coverage and get a personalized plan together. Request a quote online or contact us today to get started!
