Umbrella policies are an asset in times of mega lawsuits because they tow along excess liability above the policy limits of the home, auto, or boat insurance. Personal injury lawsuits are usually covered within the ambit of these policies; however, whether or not they cover in detail the protection of assets following a claim is an interesting contemplation.
What Is Umbrella Insurance?
Umbrella insurance, which functions as a financial safety net that covers you beyond what your policies presently allow, is an example. Let’s say your homeowner’s or auto policy has a liability limit of $300,000. Umbrella insurance coverage could then provide over and above such limits, say an additional $1 million or more. Such means you are catered for should damages or legal costs go beyond what is covered under primary insurance.
Coverage for Personal Injury
Slip and falls, defamation, or injury caused by someone’s pet might all potentially lead to personal injury claims. Here, umbrella policies usually cover things like bodily injury or property damage liability, which would usually include personal injury claims. This means when someone sues you for an injury or an accident, damages that exceed what your underlying insurance policy covers could be covered under your umbrella policy.
What Is Typically Not Covered?
What one must realize is that it’s not the all-inclusive cover by way of an umbrella insurance policy: you probably won’t have coverage for intentional acts, services of a professional, liabilities related to business, or some types of personal injury claims. Go through the terms and exclusions of the policy carefully so that you know for sure what protection you have.
Benefits of Umbrella Insurance
Essentially, what you would get with an umbrella policy is peace of mind. Legal claims, more so personal injury claims, can bring massive financial ruin. Umbrella insurance goes a long way to covering legal fees, court costs, and settlement amounts above the limits of your primary insurance while protecting your assets, such as savings, investments, and property.
Understanding what keeps and consulting with your insurance agent is the way to ensure your protection against most possible exposure to personal injury liabilities.
This post was written by Kelly-Ann Jenkins of Jenkins Law P.L. Kelly-Ann is an insurance attorney St. Petersburg, FL. The information on this site is not intended to and does not offer legal advice, legal recommendations, or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your situation.
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