If you ever did find yourself in that situation, you could lose all your savings, if you were to lose a lawsuit for a sum greater than what your existing insurance will pay. To make sure you never find yourself living that nightmare is why umbrella insurance was designed. Today, we at Insurewise LLC would like to share how an umbrella policy works and what it offers.
What Does Umbrella Insurance Typically Cover & What is Not Covered?
When you find yourself liable for a claim larger than your homeowner’s insurance or auto insurance will not cover, umbrella insurance is a type of personal liability insurance that can be indispensable. Umbrella insurance will also pick up where your watercraft’s liability insurance leaves off if you own a boat. For certain liability claims other policies may not cover, such as slander, libel, and false imprisonment, Umbrella insurance even covers certain liability claims. Umbrella insurance provides liability coverage beyond what your renter’s policy covers if you own rental property.
Does Umbrella Insurance Protect You?
If your homeowner’s insurance or auto insurance wasn’t enough, below are some examples of incidents an umbrella policy could cover.
1) A neighbor who was going for a walk may be viciously attacked when your dog runs out of the house. That neighbor will likely sue you to cover their lost wages and medical bills, as well as pain and suffering.
2) Your child gets into a fight at school and causes bodily injuries, resulting in the other parents suing you to cover expenses among other compensation.
3) Your auto insurance property damage coverage isn’t high enough to replace all 10 accident victims’ vehicles when you cause a 10-car accident. Additionally, your personal liability coverage high enough to pay for their medical bills.
4) If students develop food poisoning due to the food you provide at a special event and their parents sue you.
5) While you’re out of town, your teenager throws a party at your house and alcohol is an actively used, causing the guests to be arrested for driving under the influence on the way home. Afterwards, you are sued.
6) Malicious prosecution, wrongful entry, invasion of privacy, and other hazards is covered under umbrella policies as well.
Does an Umbrella Policy Cover Family Members?
Umbrella insurance covers not just the policyholder, as you might have gleaned from these examples. In addition, it extends to other members of their family or household. You can sleep better at night knowing your umbrella policy will cover the injured parties’ medical bills if your kid is found liable for a major accident if your teenager isn’t the best driver, you can sleep better at night. In order to actually have the coverage you need, make sure you understand how your policy defines a household member.
Umbrella Insurance & More in Salt Lake City, West Valley City, Provo, West Jordan, Orem, Sandy, Ogden, St. George, Layton, South Jordan & State of Utah
The incident doesn’t have to involve your property or your vehicle for your umbrella insurance to cover it, even though umbrella insurance acts as coverage above and beyond your homeowners and auto insurance. With the exception of homes and cars you own under other countries’ laws, you are also covered worldwide. To ensure you’re your insurance coverage is more efficient, call in the experts of Insurewise LLC to discuss umbrella insurance options.