The Benefits of Umbrella Insurance
A standard insurance policy has certain liability limits and once you reach those limits, they do not pay out any further. An umbrella insurance policy increases these limits and helps to keep you from having to pay these additional costs out of your own pocket. Whether homeowners, auto, or boat insurance, if you are sued and found liable for damages, your liability limits can quickly be reached. You will be found responsible for lost wages and medical bills, as well as other costs, and will have to pay them yourself.
You may be under the impress that your homeowner’s insurance will pay if you are liable for an accident that occurs on your property, but it is likely that your limits will only pay a portion of this costs. This liability limit determines how much your insurance company will pay, and any additional cost above that is what you will have to pay if the court decrees it. Umbrella insurance fills this gap and takes care of the excess liability you are faced with.
Liability limits of umbrella insurance range anywhere from $1 to $5 million, depending upon your insurance policy. If your home insurance policy only has a $100,000 liability limit and your neighbor is injured on your property and sues you for $300,000, your umbrella insurance policy will cover the $200,000 difference.
Umbrella coverage includes:
• Property damage liability which is when someone’s property is damaged.
• Bodily injury liability that covers medical costs you are found liable for.
• Personal liability when someone sues you.
Coverage for non-business related liabilities can also be covered, such as:
• False Arrest
• Malicious prosecution
• Wrongful eviction
• Mental anguish
If you own quite a few assets, you will definitely want to be sure that your umbrella coverage will cover their value. You are more liable to be sued if you have something to be sued for. That is why you want to be sure that you purchase umbrella coverage to give you peace of mind and protect your assets. Contact your insurance agent to learn more.