Even though the chances are slim that you will lose a lawsuit for a sum greater than what your existing insurance will pay, if you ever did find yourself in that situation, you could lose all your savings. How umbrella insurance is designed is basically to keep you from enduring a nightmare. How umbrella policy works and what it offers is what we at Signet Insurance Group would like to share today.
What Should I Look for in an Umbrella Policy?
Umbrella insurance is a type of personal liability insurance that can be indispensable when you find yourself liable for a claim larger than your homeowner’s insurance or auto insurance will cover. If you own a boat, umbrella insurance will also pick up where your watercraft’s liability insurance leaves off. Umbrella insurance even covers certain liability claims for certain liability claims those policies may not, such as slander, libel, and false imprisonment. If you own rental property, Umbrella insurance provides liability coverage beyond what your renter’s policy covers.
What Does an Umbrella Policy Cover?
Below are some examples of incidents an umbrella policy could cover if your homeowner’s insurance or auto insurance wasn’t enough.
1) When your dog runs out of the house a neighbor who was going for a walk may be viciously attacked. To cover her lost wages, medical bills, as well as pain and suffering, that neighbor will likely sue you.
2) Resulting in the other parents suing you to cover expenses among other compensation, your child gets into a fight at school and causes bodily injuries.
3) When you cause a 10-car accident, your auto insurance property damage coverage isn’t high enough to replace all 10 accident victims’ vehicles. Your personal liability coverage is not high enough to pay for all their medical bills either.
4) Due to the food you provide at a special event and their parents sue you if students develop food poisoning.
5) Causing the guests to be arrested for driving under the influence on the way home, your teenager throws a party at your house and alcohol is served while you are out of town. Afterwards, you are sued.
6) Under umbrella policies as well, malicious prosecution, wrongful entry, invasion of privacy, and other hazards are covered.
In addition to other members of their family or household, umbrella insurance covers not just the policyholder, as you might have gleaned from these examples. If your kid is found liable for a major accident, even if your teenager isn’t the best driver, you can sleep better at night knowing your umbrella policy will cover the injured parties’ medical bills. Make sure you understand how your policy defines a household member in order to actually have the coverage you need.
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Even though umbrella insurance acts as coverage above and beyond your homeowners and auto insurance, as you might have also noticed that the incident doesn’t have to involve your property or your vehicle for your umbrella insurance to cover it. You are also covered worldwide with the exception of homes and cars you own under other countries’ laws. Call in the experts of Signet Insurance Group to discuss umbrella insurance options to ensure the most comprehensive insurance coverage.
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