Umbrella insurance-what you need to know

 

Umbrella insurance also known as extra liability insurance provides security against invasion of privacy, libel, slander and vandalism. Even though you already have a policy, umbrella insurance has the purpose to help you in those situations when you are liable for a claim that exceeds the original coverage. If you are the owner of a rental property, this insurance goes beyond the coverage of your homeowner’s policy. Moreover, this type of extra protection is almost indispensable for those people who own a lot of expensive assets and they risk being sued. If you purchase the policy from the same insurer that offered you the original policy, whether it was for your home or automobile, then you might benefit from a less expensive cost. You might think that the possibility of getting sued is minimal and you might be true, but what are you going to do if you need to pay someone an enormous amount of money and your existing policy does not cover it? By choosing umbrella insurance you literally receive the financial protection you need.

Types of coverage provided by umbrella insurance

Umbrella insurance offers coverage for physical injuries, lawsuits, damage to property and personal liability situations. The best part is that other members of the family that share the same residence as the policyholder, which is you, can enjoy the benefits provided by this type of insurance.

  • Bodily injury liability covers the medical bills and liability claims that result from damages to another person. Whether you are involved in a serious car accident and you are culpable for injuring another person, a guest falls down the stairs in your home and suffers physical injuries, one of your neighbors’ children plays in your yard and falls or your dog bit someone, the insurance will cover all the costs.
  • Property damage liability comes in when you cause damages to another person’s property, of course. Whether you cause visible damages to other person’s vehicle following an accident, your child caused prejudice to school property or your pet destroyed a neighbor or a friend’s valuable possessions, umbrella insurance will provide you the needed financial support.
  • If you own a rental unit, the insurance will protect you against liability following possible claims. For instance, if one of your tenants has a dog that bit someone, as the landlord you will have to face the consequences or if someone trips and falls because of a crack placed on the sidewalk, you risk being sued.
  • Umbrella insurance provides you the necessary coverage in other situations as well including being sued for libel, slender, malicious prosecution, false arrest or imprisonment and mental anguish.

How much does umbrella insurance cost?

We cannot give you a precise answer considering that many factors influence the cost of umbrella insurance, such as the country you live in, the extent of coverage you intend to purchase and the risk that companies would take for choosing to provide you the needed insurance. However, you should keep in mind that the more assets you own and the larger the number of family members living in your household, the bigger the cost.

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