Umbrella Insurance

Umbrella Insurance is Beneficial

Standard insurance policies have liability limits, and do not pay any further than that. The purpose of an umbrella insurance policy is to increase these limits, and keep you from paying additional costs. Any property owner with insurance, homeowner, auto, or boat insurance, if you are sued and found liable, then your liability limits can be reached. When that happens, you are responsible for lost wages and medical bills, as well as other costs.

You may think that your homeowner’s insurance will pay everything if you are liable for an accident on your property. It is more likely that insurance will only pay a portion. The liability limit determines how much your insurance company will pay. Additional cost above that limit is your responsibility. Umbrella insurance fills this gap.

Umbrella insurance limits range from $1 to $5 million, depending upon the policy. If your home insurance policy has a $100,000 liability limit, and you’re sued for $300,000 because of an accident in your home, then the umbrella insurance policy will cover the $200,000 difference.

Umbrella coverage includes:

• Property damage liability for when someone’s property is damaged.
• Bodily injury liability for medical costs for which you are liable.
• Personal liability when someone sues you.

Coverage for other liabilities can include:

• False Arrest
• Slander/libel
• Malicious prosecution
• Wrongful eviction
• Mental anguish

If you own valuable assets, then you will definitely want to consider umbrella coverage. You are more likely to be sued if you have valuables or if people think you have money. Umbrella coverage can come in handy, so contact your insurance agent to learn more.