Here’s how umbrella insurance typically works:
Additional Coverage: An umbrella policy provides supplementary liability coverage on top of the limits of your primary insurance policies. It kicks in when the limits of those underlying policies have been reached.
Wide Range of Coverage: Umbrella liability insurance typically covers a broad range of liability risks, including bodily injury, property damage, libel, slander, and certain lawsuits that may not be covered by your primary policies.
Legal Defense Costs: In addition to the coverage limits, umbrella policies often cover legal defense costs. This can include attorney fees, court costs, and other expenses associated with defending yourself in a covered lawsuit.
High Coverage Limits: Umbrella policies often offer higher coverage limits, usually starting at $1 million and increasing in increments of $1 million. Some policies may offer even higher limits.
Cost-Effective: Considering the amount of coverage provided, umbrella insurance is often cost-effective. The premiums for an umbrella policy are generally lower than what you would pay for increasing the limits on your individual primary policies.
Asset Protection: Umbrella insurance is particularly valuable for individuals with significant assets, as it helps protect those assets from being at risk in the event of a large liability claim or lawsuit.
It’s important to note that umbrella insurance does not provide coverage for physical damage to your property or injuries to yourself. It focuses on liability protection for situations where you are found legally responsible for causing harm to others.
Umbrella insurance is recommended for individuals with substantial assets or those who are exposed to higher liability risks. It can provide peace of mind and help protect your assets in the event of a catastrophic lawsuit. Keep in mind that eligibility requirements may vary among insurance carriers. Please contact us to discuss this very important coverage.
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