Many people don’t think about it until it’s too late, but homeowner’s policies, car insurance and other types of insurance do not always provide you with enough coverage. In fact, many policyholders can benefit from personal umbrella liability insurance.
What Is Covered by Umbrella Liability Insurance?
Personal umbrella insurance for liability protects you in two main situations:
- If you need more liability coverage than your homeowners, auto or other underlying policy carries when you are found liable for bodily injury or property damage.
- In circumstances where you are sued for an event that may not be covered by other underlying
If you are in a car accident or someone is injured on your property and you are found liable for this damage, your car insurance or home insurance policies cover the initial cost of the liability related to a legal claim. However, there is a limit on each of these policies, and you may be responsible for any amount in excess of it. Umbrella liability policies cover the additional liability cost in this event up to your selected limit. In other words, the umbrella policy will cover over and above the limit that your auto and homeowners policies carry. Keep in mind, to obtain an umbrella policy, you will be required to carry certain limits on your home and auto policies. Otherwise, it may create a gap in coverage between your homeowners or auto policy when the umbrella limit would kick in. These limits may vary according to the insurance company’s rules.
Umbrella policies can also protect you in the event of a liability claim related to a rental property you own or in case you are sued for situations such as:
- Malicious persecution
- Mental pain and suffering
- False detention
- Other personal liability claims
Make sure to review the details of your umbrella policy with your agent to be sure that these types of coverages are included as not all umbrella policies are the same and can also vary by insurance company.
Why You Might Need Umbrella Liability Insurance
You may think liability coverage on your existing policies is enough, but in fact, many cases are settled for far more than the limits on the underlying policies. Car accidents, for example, often lead to large liability claims because the injured parties have considerable medical bills. Medical bills after a traffic collision can easily add up to hundreds of thousands of dollars or even more if someone is seriously or permanently injured.
Umbrella policies protect you in these and other situations. If you find yourself accused in civil court of slander or other wrongdoing, or if you are sued for any liability situations, liability policies provide peace of mind. They may cover what your current policies do not. You never know when a major claim will happen. Having a strong umbrella policy in place can mean you don’t have to stay up at night, worried about the future or your assets. You’re protected. That’s the Upside of Insurance.
The Upside of working with Gunn-Mowery, LLC is that we can help you find the right insurance fit at the most competitive price. We are an insurance agency, meaning we can compare and help you get competing quotes from multiple insurance companies. By comparing companies, you can be sure to get the right fit in policy as well as a price that fits your financial plans. At Gunn-Mowery, LLC, we also listen to your needs and work to bring you the coverage that offers the most security.
Contact us today for a quote to find out how much you can save.