Feb 12 Umbrella Insurance: Coverage of the Month
Umbrella Insurance – February Coverage of the Month
Have you heard the common myth that Umbrella Insurance policies are only for wealthy individuals? Although it’s true that umbrella insurance is important to protect assets, having this type of coverage is important for anyone with any amount of assets. If you have wages that could be garnished or a nest egg stashed aside for your retirement, then you could be at risk without Umbrella Insurance.
What is Umbrella Insurance?
Umbrella insurance is supplemental liability insurance. This insurance protects the gaps in coverage that your traditional home and auto limits may not cover. In basic terms, this coverage kicks in when the liability limits on your home and auto policies have be met. Without this insurance, if you are found at fault for certain types or liability claims, your assets and wages could be garnished to cover the costs over your liability limits.
What Does Umbrella Insurance Cover?
Overall, having umbrella insurance provides the protection you may need for:
- Bodily injury liability
- Property damage liability
- Landlord liability
- Legal fees, false arrest, libel, and slander
Bodily Injury Liability
This type of liability coverage is designed to cover the cost of medical bills due to injury to another person’s body if you are at fault for the accident. This type of coverage could be used in the case that you are in a auto accident that injures other passengers or drivers, injuries a guest or child sustains from an accident on your property, or even if your dog harms or injures someone.
Property Damage Liability
This is designed to cover the cost of damage or loss of another person’s property if you are found at fault for an accident. Damage to another person’s property could happen if you are in an auto accident and total another drivers vehicle or if structural damage is caused by an accident.
If you are a landlord with rental properties, this insurance can help protect you from claims if someone sues you for injury while on your property. An example would be if a tenant sustains injury on your property and you were found at fault, this coverage would help cover costs of the claims.
Legal Fees, False Arrest, Slander, & Libel
Umbrella insurance also can help cover costs of legal fees you may accrue if you need to defend yourself in court due to false arrest and claims of slander and libel.
You Might Benefit From Umbrella Insurance If You:
- Are a landlord
- Own an aggressive dog
- Have savings, retirement, or other accounts
- Own multiple cars
- Have a high net worth
- Own a swimming pool or trampoline
- Have one or more teenage drivers
- Entertain at home frequently
The bottom line of Umbrella Insurance is that it’s an important supplement to your homeowners and auto policies. It provides the extra needed protection you need from liability claims that may exceed the limits of your traditional policies and helps cover costs of claims so you’re not losing your assets or wages. Call our offices today to be proactive and protect yourself if you are at high risk of liability claims. Our Personal Risk Advisors will be happy to asses your risk and get you the umbrella coverage that best fits your needs.