The more assets and income you collect, the more you think about protecting them. Most people turn to the excess liability coverage of a personal umbrella insurance policy to shield their belongings and earnings from lawsuits. But how does an umbrella policy protect you? What is covered?
Umbrella insurance can help pay for any damages or injuries you may be personally liable for causing. This includes incidents occurring at your home and/or caused by you, residents of your household or your pets. Some common examples are: your dog bites someone; a guest falls down your front steps; car accidents; your child’s friend breaks an arm or leg while wrestling around in your home. Lawsuits can stem from any number of incidents in which another person is injured, experiences property damage, or perceives they have been wronged in any way.
This type of insurance can also protect you from libel, defamation and slander claims. Excess liability coverage can even help pay for your legal defense and court fees should you face a lawsuit. The policy kicks in once your home or vehicle insurance policy coverage is exhausted, ensuring your personal finances cannot be raided to pay off settlements for damages.
Like most insurance, what is covered is less important than what is not. Unless an event or situation is specifically excluded in the policy document, it’s most likely covered. Umbrella insurance coverage differs from policy to policy and company to company. However, common exclusions include intentional damages or injuries, damages arising out of business or professional pursuits (that requires commercial umbrella insurance), and any liability assumed under a contract or agreement. Most aircraft, personal watercraft and other non-traditional recreational vehicles are also excluded from many umbrella policies. It’s important to read any policy carefully to find out what is excluded from umbrella coverage before purchasing it.
It’s also a wise idea to enlist the services of a knowledgeable, independent agent at Gallant Insurance Agency. We can identify your liability risks, suggest coverage options best suited for you, and assist you in finding several quotes from a variety of insurance providers. Contact us to connect you with an umbrella insurance policy that meets your needs at the most affordable rates.