Umbrella Insurance Basics
Umbrella insurance provides you with a barrier against financial disaster. Accidents happen, and sometimes catastrophic ones that exceed your existing liability protection. Lawsuits happen, particularly in today’s litigious society. Without an umbrella policy, your financial assets would be at risk to pay for damages owed after an adverse judgment.
Who Should Consider Umbrella Coverage
While it’s a good idea for anyone to consider umbrella coverage – it’s surprisingly affordable for the amount of additional coverage it provides – it’s essential for people with more expansive financial assets. Business owners, landlords, and others with significant investments to protect are at particular risk from an adverse judgment. If your net worth exceeds your liability protections, it’s excellent coverage to pick up.
What Kind of Judgments are Covered?
- Any judgment that determines you, your household, or hazards encountered on a property you own are responsible for injury or property damage.
- Personal liability – when you are responsible for damages – whether they occur on your property or elsewhere.
- Libel, slander, false arrest, and even wrongful eviction personal injury claims are also covered.
- The costs of your legal defense, and that means coverage for your lawyer’s fees as well as any required court cases.
What Umbrella Coverage Does Not Protect
- There are exceptions to what you can protect under this type of policy. A few examples:
- The liability you accept through contracts or agreements is not covered. Make sure you thoroughly review all contracts you intend to sign.
- Aircraft and most recreational vehicles are usually unable to be covered under an umbrella policy.
- Damage intentionally caused by yourself or a household member is not covered.
- Damage covered under a workers’ compensation policy is not covered.
Rainy Day Fund
When you are ready to protect yourself and your financial future against catastrophic accidents or legal liability claims, call or visit us at Insurance Solutions Inc. Serving the Cullman, AL area, we are happy to review your assets and help you make the best policy choices for your needs.