When it comes to protecting our homes and cars, we often think of home insurance and auto insurance. But how can umbrella insurance also play a role in protecting your homes and cars?
While home and auto insurance may give you good coverage for your property, there may be accidents where the costs are more than your insurance’s liability limits. To keep yourself protected from these extra costs, umbrella insurance would be your answer. Umbrella insurance acts as an extra layer of coverage on top of your home and auto insurance for situations where your insurance alone is not enough to cover the accident. Umbrella insurance can range from $1 million to $10 million in additional liability coverage.
What Does Umbrella Insurance Cover?
· Property Damage: Covers costs of damage to another person's property.
· Certain Lawsuits: Such as invasion of privacy, false arrest, defamation, slander, or libel.
· Covers for legal costs of these lawsuits as well.
· Bodily Injury: Cost of injuries to another person who you are responsible for.
· Rental Units: Provides additional liability coverage to your rental property that your landlord insurance may not cover.
What Is Not Covered by Umbrella Insurance?
· Personal property damage: Damage to your own property.
· Intentional Acts: Intentionally harming someone else or their property, or any type of criminal act.
· Business Losses: Losses related to your business or services.
· Oral or written contracts: Liabilities stated in the contract.
Do You Need Umbrella Insurance?
Those who have expensive homes and/or more assets can result in being at higher risk of getting sued are highly recommended to get umbrella insurance. Those with these types of assets have a higher chance of having lawsuits that can cost well over their insurance limits, so having that extra coverage with umbrella insurance may be a good idea.
Circumstances that may increase your risk of a lawsuit:
- Owning pets
- Owning your own business
- Having a swimming pool
- Owning rental properties
- The more rental properties you own, the higher the risk of lawsuit
- Employing household staff
- Hosting parties
How Much Does Umbrella Insurance Cost?
As everyone has different needs and liability risks, the cost of umbrella insurance can vary from person to person. Factors such as how much coverage is needed, personal risks, and the limits on your home and auto insurance policies can all impact the cost. Most umbrella insurance policies start at a minimum of $1,000,000 in excess liability, and can go upwards of $10,000,000, depending on need. Contact us for more information about what may be right for you.
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