Umbrella insurance is an important coverage needed to ensure you and your family are protected. A common misconception is that umbrella insurance is only beneficial for wealthy people. While it’s true that umbrella insurance is often used to assist wealthy people who are involved in serious liability disputes, it is something that everyone should consider adding. Here is what you need to know about umbrella insurance.
- Umbrella Insurance Explained
Umbrella insurance covers people involved in liability lawsuits because they are responsible for an accident or someone getting injured. Umbrella coverage adds an extra layer of protection to people who have many assets in addition to their home and auto insurance policies. Umbrella insurance is used alongside traditional home and auto insurance coverage.
Umbrella insurance covers much more than luxury homes and cars. Let’s say someone slipped and fell in front of your home and suffered a severe injury. They can pursue litigation against you for their medical bills. Without having that extra layer of protection, you may be responsible for thousands of dollars’ worth of damage that exceed the liability coverage on your home insurance policy. Once you have reached the maximum amount of liability coverage on your insurance policies, umbrella insurance will cover the difference.
- Dog Bites & Other Things Covered by Umbrella Insurance
Umbrella insurance can help protect you in several ways. If you have a trampoline or swimming pool in your backyard, umbrella insurance will cover you if something goes wrong. A trampoline and swimming pool have high liability risks because someone can get severely injured if something goes wrong. If you have a dog, you could be liable for extensive damages if they bite someone, leading to an injury. You will still be held responsible if your dog bites someone away from your home. However, you can have peace of mind knowing that an umbrella policy covers dog bites.
You also have to be careful regarding the things you say, as one inappropriate comment on a blog or social media post could lead to you being sued for thousands of dollars. Umbrella insurance will cover you if you are accused of slander or defamation of character. While you may view it as criticism, legally, it may be considered to be malicious speech. If this happens and a judge finds you guilty, liability insurance will cover you.
Your umbrella insurance is an asset even when you go on vacation. If you are involved in a serious liability dispute while you are away from home, you can enjoy peace of mind that you will be protected. Umbrella insurance can be added to your renters insurance policy as well.
- Things to Consider When Looking at Umbrella Insurance
There are a few scenarios where you will not be able to rely on your umbrella insurance coverage. You’ll need a special type of coverage to protect you if you have a jet ski or some kind of all-terrain vehicle. Any independent contractors who come to do work at your home should have their own insurance coverage. If you hire a full-time housekeeper, you’ll have to find a different form of coverage if they are injured at your home. However, if you occasionally use the services of a babysitter, they should be covered under your umbrella insurance policy. Keep in mind that umbrella insurance only protects you when you are involved in a liability dispute. The policy does not assist you if you get injured or if your property suffers damage.
Umbrella insurance can be a huge asset if you are facing a serious lawsuit. To learn more about various types of insurance, contact the experts at Weaver & Associates today.