What Is An Umbrella Policy?
An umbrella policy is an additional layer of liability coverage in excess of your other insurance policies. If you are involved in an accident that you are held liable for and the damages exceed your policy coverage limits, the umbrella policy acts as a supplemental policy. Umbrella insurance policies can help protect you from losing your property and life savings in the case of a lawsuit related to liability.
This type of policy is for anyone who wants to protect their home, savings, investments, and future income. You should evaluate your lifestyle to determine the amount of coverage to purchase. Consider your net worth, future income, and the amount of risk that you face in your daily life.
If you are held legally responsible for bodily injuries to another person or for property damages, your homeowner’s, renter’s or automobile insurance will normally pay out damages to the limits of the policy. Once that happens, your umbrella policy will begin to cover you and pay expenses to the damaged party. For instance, if you caused bodily injury to someone in a car accident, your auto policy pays their medical bills up to the limits of your policy. If the injured party needs long-term medical care, your umbrella insurance will pick pay the medical bills for them.
The types of policies available cover bodily injury liability, property damage liability, and landlord liability coverage. Bodily injury liability covers medical bills caused by injuries sustained by guests on your property, automobile accidents, and in some cases dog bites. Property damage liability pays in the case of property loss, including automobiles. If you own a rental building, the policy can add an extra protection for slip and fall accidents and other injuries.
This kind of policy can protect you from losing your savings, property, and future income. It also will cover your legal costs in the case of a lawsuit. It will protect you if you are sued for slander, libel, or malicious prosecution. Get the peace of mind knowing that you are covered for any event.