Umbrella Liability Insurance 101 – What is it, do I need it?

Do You Need Umbrella Insurance?

Unfortunately, in today’s society, lawsuits seem to be lurking everywhere. If an unexpected accident was to happen, and you were found at fault, are you confident in your liability protection?

Oftentimes, homeowners, auto and watercraft have a limit on the liability insurance that is included within the respective policy—but what if you are looking for that extra degree of security?umbrella insurance

Umbrella insurance is designed specifically, to help put the minds of policy holders at ease. An umbrella policy provides the added liability protection, not found in your standard homeowners, auto or watercraft personal insurance policies.

Most liability coverages, which reside within your current insurance policies, only cover bodily injury and property damage to others. Umbrella policies will extend those coverage limits to not only provide additional coverage for bodily injury and property damage, but also cover other aspects such medical expenses, rehabilitative therapy or lost waged dues to the negligence of those found at fault.

Your typical umbrella liability insurance will cover:

  • Claims of bodily injuries or property damage caused by you, or members of your family, as well as hazards on your property, for which you are found responsible for
  • Personal liability coverage for incidents or accidents that occur on or off of your property
  • Enhanced protection above your standard auto policy, for auto-related liabilities
  • Protection against non-business related personal injury claims such as slander libel, wrongful eviction and false arrest
  • Legal defense costs for covered loss, including lawyers’ fees and associated court costs

It’s important to keep in mind that each personal insurance policy is different. What may be considered a covered liability under one policy may not be covered under another. Your umbrella insurance policy would kick in, when a situation such as this presents itself—and furthermore is there to protect you when you exceed the amount of liability coverage allotted to you for a particular event or accident, in which you are found at fault.