Why You Need an Umbrella Policy: Protecting Your Assets Beyond Primary Insurance
An umbrella policy is an additional layer of liability insurance that can protect you if you are sued for damages that exceed the limits of your primary insurance policies, such as your homeowner's or auto insurance. Here is a breakdown of the key components of an umbrella policy:
Coverage Limits:
An umbrella policy provides coverage above and beyond the limits of your primary insurance policies. For example, if your homeowner's insurance has a liability limit of $500,000, and you are sued for $800,000, your umbrella policy can provide the additional coverage you need.
Covered Events:
An umbrella policy often could cover the same events as your primary insurance policies, such as bodily injury, property damage, and personal injury. However, it may also cover events that are not typically covered by your primary policies, such as libel or slander.
Legal Defense Costs:
An umbrella policy can also cover legal defense costs, including attorney fees, court costs, and other expenses associated with a lawsuit.
Additional Coverage:
Umbrella policies offer additional coverage options, such as coverage over rental properties or watercraft liability. For that reason it’s critical all your properties, cars, assets, boats, motorcycles etc be posted and included.
Uninsured/Underinsured Motorist coverage:
It's important to note that umbrella policies are not a substitute for primary insurance policies. Instead, they provide an additional layer of protection that can help protect your assets and financial security in the event of a lawsuit.
It's important to speak with your agent to determine if an umbrella policy is right for you and to ensure that you have the coverage you need.
In summary, an umbrella policy can provide additional liability coverage to protect your assets and financial security in the event of a lawsuit. By understanding the key components of an umbrella policy and working with your agent to ensure you have adequate coverage, you can have peace of mind knowing that you are protected in the event of an unexpected loss.
