What You Need to Know About Personal Umbrella Insurance

What would you do if you’re sued for something your regular insurance doesn’t cover? Most people can’t pay defense and liability costs that aren’t covered by typical insurance policies. If you’re held personally liable for injury to another person or for property damage, personal umbrella insurance can step in to cover the cost. Personal umbrella insurance safeguards your assets, protecting you from large and potentially devastating liability claims or judgments. Here’s the important personal umbrella insurance information you need to know.

What does personal umbrella insurance cover?

Essentially, personal umbrella insurance protects your assets if your actions cause damage or injury to another person and you’re found personally liable. It covers the following types of damage:

  • Personal injury: Bodily injury liability covers damage to another person’s body due to an accident. An umbrella policy can cover medical bills and/or liability from claims that arise from auto accidents, dog bites, a fall on your property and other injuries.
  • Damage to another person’s property: An umbrella policy can cover the cost of damage or loss to the other involved party’s tangible property. This includes vehicle damage that occurs as a result of an accident where you’re at fault.
  • Landlord liability: Owners of rental units may face liability for a wide range of claims, from someone tripping on the sidewalk at your property to injuries caused by a tenant’s dog to another party. An umbrella policy will help protect you against financial liability that arises from situations that occur at your rental property.

What isn’t covered by umbrella insurance?

Developing a full understanding of umbrella insurance information also involves determining what isn’t covered by the typical policy. Here are some of the important assets that are not covered:

  • Personal property
  • Business losses
  • Intentional actions (criminal liability)
  • Contracts

Who needs umbrella insurance?

Everyone can benefit from an umbrella insurance policy, mainly because accidents that result in high costs in terms of bodily injury and property damage can happen to anyone. In the event of an unfortunate accident, an umbrella plan can prevent you from paying out of pocket for the injured party’s medical or legal bills if you’re deemed responsible for the damage.

There are many situations in which an umbrella insurance policy may be particularly beneficial. While your homeowners insurance policy likely covers some amount of liability if you cause an accident or if one occurs on your property, a personal umbrella plan increases that limit, which may be useful for damage that creates significant expenses.

An important thing to keep in mind is that umbrella policies extend to other members of your household, including your spouse, kids and any other relatives who may live in your home and who don’t have their own auto or property insurance policy. If any member of your household is involved in an accident and is found to be at fault, your policy protects them, too.

Want to learn more about personal umbrella insurance? Contact Harvey Sarles Insurance Agency today and discover how this special policy can safeguard your assets and provide you with unmatched peace of mind.

Read More