888.754.8299 or 413.475.7283
25 University Drive, Amherst, MA
umbrella insurance

The Uses of Umbrella Insurance

Umbrella Insurance is an extra layer of protection. It is designed to be extra coverage to your existing homeowners or auto insurance. It is there to help protect you from large claims and lawsuits by providing additional coverage past your other policy’s limits. Umbrella coverage helps protect from bodily injury, personal injury, property damage, and landlord liability. Additionally, if you have have a high net worth, or participate in risky activities (such as skiing, or even volunteering or carpooling), then it’s worth looking into getting a umbrella policy.

Bodily Injury

Having umbrella insurance can help protect you from lawsuits and claims regarding bodily injury. For example, if you get into a bad accident and it’s your fault, umbrella insurance could be helpful. Or if your dog attacks someone and they have to go to the hospital because of it, your umbrella insurance can help extend coverage past your homeowner’s policy limits. Other instances of bodily injury can include someone slipping and falling in your home. If you own pool or trampoline, having umbrella insurance is also not a bad idea.

Property Damage

If you are driving your car get accidentally damage someone’s home, then that would be property damage. If the damage exceeds your coverage limits, then umbrella insurance can help cover excess amount. Other examples of property damage could be your dog  or child ruining someone else’s home.

What Doesn’t It Cover?

Umbrella insurance doesn’t cover everything. Your personal property is usually not covered. Neither is your own personal injuries. It also does not cover intentional or criminal activities. And it also doesn’t cover contracts that you’ve entered. So, if your home contractor decides to sue you for an accident during your home renovation, then umbrella insurance will probably not be applicable for that situation. Umbrella insurance is there to help if others sue you for damages that you’ve caused. If you need additional protection personally, then you may want to talk to your insurance agent about your auto and homeowners insurance policies. Umbrella insurance is just a safety net in the event damages you’ve caused surpass the limits on your other coverages.

What’s an Example Of Umbrella Insurance

Let’s say you get into a bad car accident which you are at fault. The other driver is injured and goes to the hospital. His medical bills are $500,000. If your auto insurance limit is $300,000, then you are still $200,000 short. That’s a lot of money to pay out of pocket.

And, let’s say that the injured driver cannot work due to injury and sues you for another $250,000, even though your auto insurance coverage has reached its limit. This is why it’s important to have umbrella insurance. It can help cover the additional $200,000 in medical expenses and help cover the lost wages. Without umbrella insurance, you could be owing a significant amount of money!

It’s important to choose the right amount of umbrella insurance. Getting the right amount of coverage can help protect you in these unfortunate situations. Talk to your insurance agent about an umbrella policy. They can help you get the right coverage to suit your needs. They can also help answer any questions you may have!

Talk to an Encharter agent today at 888.754.8299!

Read More