Just as umbrellas keep out any rain, so does umbrella insurance help to shield you from excess losses. We live in a society where lawsuits are common and the judgements can be hefty. Umbrella insurance may protect you from a lawsuit if someone is injured in your home or on your property. A personal umbrella policy, excess liability insurance, can also protect you if common occurrences happen such as accidents with your auto, boat, recreational vehicle, or snowmobile. Typically, insurance policies only cover bodily injury and property damage to others up to a set limit. Umbrella insurance policies provide protection beyond the liability limits of these standard insurance policies such as your car insurance or homeowner’s insurance policies.
Every policy is different, so what is considered a covered liability issue under one insurance line may not be covered on another insurance line. Umbrella insurance may kick in when these situations present themselves and/or you exceed the amount of liability coverage for the events that are already allowed under your regular insurance policies.
You may not think you need an umbrella policy, but consider these scenarios:
What happens to you and your family’s assets should you be sued for something that occurred at your home and the legal costs of the lawsuit greatly exceed the liability coverage defined by your homeowner’s policy? Something as simple as a guest falling in your bathroom could cause such a devastating lawsuit.
Someone could trip over a crack in the sidewalk on your rental property. Who will they sue to cover the damages from their fall? Unfortunately, you will be responsible for those medical bills.
Who will pick up the tab if you are responsible for a multi-car accident and your liability costs exceed the limits on your car insurance by thousands of dollars?
What happens when your dog bites your friend’s small child? What if Fido tears up their beautiful, oriental rug?
Although these kinds of things may be few and far between, you cannot be too careful. You have all worked too hard to get where you are to have just one lawsuit take it all away.
Umbrella insurance is typically purchased at a low cost to you, but will provide enough coverage to where you shouldn’t have to worry about unforeseen liability costs in the future.
Fill in the gaps in your insurance program and contact Henderson Insurance Agency today for more information on umbrella policies or click here to get a free online quote.