What is Umbrella Insurance?

umbrella-insurance

What is Umbrella Insurance?

Umbrella insurance is extra insurance that provides protection beyond the existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.

Umbrella insurance can help to protect you and your assets in two ways:

  1. Umbrella insurance may provide coverage when your homeowners, auto, or boat insurance policies are already exhausted.
  2. Umbrella insurance provides coverage for claims that may be excluded by other liability policies. This includes claims such as; false arrest, libel, slander, and liability coverage on any rental units you may own.

What Does Umbrella Insurance Cover

Umbrella insurance can be tricky, so allow the experts at Staples & Associate to dig into the details for you! Umbrella insurance provides coverage for:

  1. Injuries.
  2. Damage to property.
  3. Certain lawsuits.
  4. Personal liability situations.

 

Your homeowners and auto insurance may cover some of these situations, it’s true. However, umbrella insurance insures you beyond the limits of your policies and covers some situations that may not be covered. Examples of the coverages that are provided by an umbrella policy include:

Bodily Injury Liability

This covers the costs of damages to another person. For example, the cost of medical bills and/or liability claims that are caused by:

  • An auto accident where you’re at fault.
  • If a guest gets hurt in your yard or home.
  • The harm caused to others by your dog.

Property Damage Liability

This will cover the cost of damage or loss to another person’s property. This could include the cost associated with damage to vehicles and other property due to an auto accident where you’re at fault.

Owners of Rental Units

As a landlord, umbrella insurance may help to protect against liability that you may face. These liability claims can include:

  • Someone tripping on the sidewalk of your property and suiting you for damages.
  • Your tenant’s dog biting someone and them holding you responsible for any injuries.

Coverage is Also Provided if You’re Sued for:

  1. False arrest, detention, or imprisonment.
  2. Libel: An injurious written statement.
  3. Slander: An injurious spoken statement.
  4. Malicious prosecution.

Learn more about the benefits of umbrella insurance and contact an agent at Staples & Associates today!