Having insurance is a necessity in today’s world. You never know what may happen to your health or whether or not you may have an accident. Choosing the appropriate insurance for you and your family can make all of the difference should circumstances change. In a nutshell, Umbrella Insurance coverage is designed to add an additional layer of liability coverage to another insurance policy.
Umbrella Insurance Coverage
Primarily, this policy is intended to help policyholders should an especially significant liability claim be filed, and the underlying liability limit has already been reached.
The areas most commonly covered include:
Personal Injury
Personal injury cases are when there is a physical injury rather than damage to property.
Bodily Injury
Bodily injury cases are when there is physical harm that may be covered under your policy.
Third Party Property Damage
Property damage is when there is damage to one’s car or home.
Landlord Liability
Landlord liability claims are when physical or property damage occurs at a rental property.
Keep in mind, the details of the claims listed above will determine whether or not the umbrella coverage will cover the costs. Also, your primary insurance will need to be exhausted before the Umbrella Insurance kicks in.
What Doesn’t a Policy Cover?
Keep in mind; Umbrella Insurance coverage does not cover all types of losses. Here are a few of the blind spots that are not covered by Umbrella Insurance.
Business Losses
Business losses are not included in an Umbrella Insurance policy. This includes home-based businesses, malpractice lawsuits, or any funds obtained while holding a position with a non-profit group.
Criminal Acts
Criminal acts are not covered under Umbrella Insurance, even if there is restitution associated with your criminal act.
Contracts
Both written and verbal contracts are usually not covered by an Umbrella Policy. For instance, if you pay a person to renovate your home and fail to do the work after you pay them, then Umbrella Policies will not likely help you recoup those costs.
Personal Belongings
Another interesting thing about an Umbrella Policy is that while it may cover the losses of another person’s personal property, it is unlikely to cover the personal belongings of the policyholder.
Who Should Acquire a Policy?
Virtually anybody can benefit from an additional Umbrella Insurance policy since anyone can be involved in a high-cost claim. Another added benefit of this type of policy is that it usually can cover other family members such as your spouse or children. For many people, an Umbrella Insurance policy is that extra peace of mind if single insurance is not enough.
Speak To The Personal Insurance Brokers
Are you curious to know more about Umbrella Insurance policies? Please reach out to us at Southern States Insurance. We are more than happy to walk you through the pros and cons of different insurance types so you can make the best decision for you and your family. Contact us to learn more by calling 888.971.6304 or by requesting a quote online today.