Umbrella Insurance is defined as a type of liability insurance that supplements other, primary liability policies such as home, renters, or auto insurance. Also referred to as excess liability insurance, it comes to the rescue when the dollar limit of other policies has been exhausted. It’s particularly useful to individuals that have considerable assets and wish to protect them from financial risk.
In this blog, we take a look at what umbrella insurance really is, the area that it covers, and how it can be useful to you.
How is Umbrella Insurance Useful?
Umbrella insurance is useful for your financial future by protecting you from litigation resulting from injury or property damage. It also pays for the legal defense costs.
As mentioned previously, umbrella insurance supplements other basic policies and requires an underlying or primary policy to come into effect. For example, an auto insurance policy acts as the primary liability and pays for all the damages. If the costs involved in an accident exceed that of your auto coverage, the umbrella policy will cover the excess amount.
Do I Need an Umbrella Policy?
Watercraft, auto, and homeowners insurance represent the three basic types of limited liability insurances. These will pay for an injured person’s rehabilitative therapy, medical bills, and lost wages. They also cover the legal costs which include hiring defense representatives if the case reaches the courtroom.
In most cases, the money required to pay for medical expenses and the legal fees exceeds the limit of most basic policies, leaving a person in a vulnerable position. Since it is almost impossible to determine how much the judge may penalize the accused, it puts one’s assets at risk of being confiscated by the authorities. These factors make purchasing an umbrella policy a necessity in today’s day and age.
What Umbrella Insurance Covers
The following are the costs covered by umbrella insurance:
- Property Damages:In the unlikely case that your child breaks the neighbor’s expensive vase or that you crash a rental boat into a pier, an umbrella policy will cover the costs.
- Bodily Injury: Covers the medical bills resulting from car accidents that exceed your auto policy. Also covers costs not included in a home insurance policy such as your dog biting someone while you’re out on a walk.
- Legal Fees:Court costs and legal fees involved in lawsuits are pretty expensive. Umbrella insurance will protect your assets and ensure you can afford a good lawyer.
Basically, an umbrella policy ensures you’re protected in case the damages exceed that of your basic policy plans. B&M Success Insurance Agency offers affordable umbrella insurance in Roseville, California that protects your finances in case events take a turn for the worst. Contact us today for more information.