Umbrella Insurance provides exactly the type of coverage that it sounds like it would;
it provides an umbrella for you to stand under. Liability issues are everywhere and you
never know what could cause someone to present you with a lawsuit. Basically, Umbrella
Insurance policies protect you from liability issues that go beyond the liability limits
of standard insurance policies, such as your homeowner’s insurance, car insurance, etc.
This policy literally puts you under its umbrella so that when you exceed the liability
coverage limits on an insurance line, you will still be protected.
Most liability coverage that rests within your current insurance policies only covers
bodily injury and property damage to others. Umbrella policies will extend those limits
to not only provide additional coverage for bodily injury and property damage, but also
to cover things that are not listed under regular liability allowances. Every policy is
different, so what is considered a covered liability issue under one insurance line may
not be covered on another insurance line. Umbrella Insurance kicks in when these
situations present themselves and/or you exceed the amount of liability coverage for the
events that are already allowed under your regular insurance policies.
You may not think you need an umbrella policy, but consider this: What happens to you
and your family’s assets should you be sued for something that occurred at your home and
the legal costs of the lawsuit greatly exceed the liability coverage defined by your
homeowner’s policy? Who will pick up the tab if you are responsible for a multi-car
accident and your liability costs exceed the limits on your car insurance by thousands
of dollars? Although these kinds of things may be few and far between, you cannot be too
careful. Umbrella Insurance is typically purchased at a low cost to you, but will
provide enough coverage to where you shouldn’t have to worry about liability costs in
the future.