Umbrella Insurance 101

Umbrella Insurance is a type of insurance that provides coverage over what you will receive with a basic automobile or homeowners policy, or also known as an extra layer of protection. It is commonly used for people wanting to protect their accumulated wealth from criminal acts, lawsuits and other types of liability. We will go over in this article everything you could want to know about this type of insurance.

Benefits

An example of where umbrella insurance would come in handy would be if someone fell and injured themselves at your house while trick or treating and decided to sue you. While basic liability insurance would not cover this, umbrella insurance would. Therefore, the biggest benefit of this insurance is coverage in the event of being sued. It would also protect your assets in the event of a lawsuit. Umbrella insurance is generally inexpensive and worth the investment to protect your wealth. 

How it Works

When you have used all the coverage given by your auto, boat or homeowners policy, umbrella insurance kicks in. It would be very useful to have this type of policy in the event of an accident that you caused. Your policy will kick in and cover any claim that someone would file against you.

What is Covered?

When your assets exceed the coverage on your auto or homeowners policy, umbrella insurance takes over. You will receive liability coverage over the following items with this insurance:

• Some types of lawsuits
• Injuries
• Property damage
• Situations that involve personal liability 

Things the Policy Will NOT Cover

• Self inflicting injuries
• Intentional property damage done by insured
• Accidents from driving another person’s car or riding as a passenger in someone else’s car
• Damage done to business used vehicles
• Property that you own but is not listed on your Declarations Page

Examples Where You Would Use Umbrella Insurance

• Protection of your assets in the event of court judgement being placed against you
• Covering legal defense costs
• Accidental bodily injury to yourself or others

We’d love to help you with all of your Insurance Needs. If you have any questions or if you’re ready to purchase your policy, email an agent here.