Umbrella Insurance is additional liability insurance in excess of your primary auto, homeowners or boat insurance policies. This type of policy is written to protect you from catastrophic liability claims and lawsuits; the main purpose is the protection of assets.
The Umbrella Policy:
1. Provides excess liability coverage above the limits of your homeowners, auto, motorcycle, and boat insurance policies. This policy begins when the liability limit on the underlying policies has been exhausted.
2. Provides coverage for claims that may be excluded by other liability policies; for precise details, coverage on the underlying policies and specific umbrella policy must be reviewed.
Simply, the umbrella policy covers:
• Injury Claims
• Damage to property
• Certain lawsuits
• Personal liability situations listed below
Here are examples of the types of coverages provided by an umbrella policy and how they protect you:
Bodily Injury Liability – covers the cost of medical bills for bodily injury and liability claims as a result of:
• Injuries to other parties due to a serious auto accident where you are at fault
• Harm caused to others by a pet
• Injuries sustained by a guest in your home due to your negligence
• Injuries sustained by a neighbor’s child who falls while playing in your yard
Property Damage Liability – covers the cost of property damage or loss to another person. Typical scenarios may include:
• Damage to vehicles and other property as a result of an at fault auto accident
• Damage claims incurred when your pet destroys your neighbor’s furniture
• Accidental damage to school property caused by your child
Owners of Rental Units – protects against liability that you may face as a landlord. Common claims may be:
• A person tripping over a cracked driveway of your rental property and suing you for damages
• A tenant’s dog biting someone and you being sued for the injuries
Coverage is also provided should you be sued for:
• Slander – injurious spoken statement
• Libel – injurious written statement
• False arrest, detention, or imprisonment
• Malicious prosecution
• Shock/mental anguish
To better understand how the umbrella policy works; let us assume you are involved in an at fault automobile collision and a single occupant of the other vehicle has sustained bodily injury at the cost of $500,000. If your auto insurance policy has a Bodily Injury limit per person in the amount of $250,000, your auto policy will pay $250,000 of the injuries but who will pay the rest? This is where your umbrella policy will kick in. The umbrella policy will pay up to the umbrella policy limit over and above the underlying policy’s limit of liability.
Programs are available allowing up to a total of 30 residential units owned, LLCs, Estates, and Trusts.
If either you wish to protect your assets or simply protect yourself and your family from future liability claims, a Personal Umbrella Policy is the way to do it! The very affordable peace of mind you should have! For a free consultation or quote, please call toll free:(877) 931- 3368.