An umbrella insurance policy provides an extra safety net when the liability limits of your auto, home, or renters insurance policies have been exhausted. Contrary to popular belief, it’s not just for the wealthy. Here are the most common scenarios that may involve an umbrella policy and how this insurance can protect what matters to you.
1. Car Accidents — This is the most common claim under umbrella policies. For example, if you are responsible for a multi-car accident involving several people who suffered serious harm, the medical bills can quickly exceed the limits of your standard auto insurance policy. This is when your umbrella policy can fill the coverage gap.
2. Home Accidents — When a guest trips and falls down the stairs in your home because of loose handrails, this can lead to significant liability claims. If the guest decides to sue you, you may incur high legal fees. Your umbrella policy is there to fill in the gaps when your homeowners policy isn’t enough to cover these expenses.
3. Landlord Liability — If you rent out property, you could be held responsible for accidents that occur on the property. A standard landlord policy may not be enough to cover all damages, making an umbrella policy a wise investment.
4. Personal Injury — This includes libel, slander, and invasion of privacy. In our increasingly litigious society, these types of claims are more common and can be financially devastating. If you are sued for slander (spoken) or libel (written), an umbrella policy can cover legal costs and any damages awarded.
5. Dog Bites — If you own a dog, you could be held responsible for bites or other injuries caused by your pet. The costs of medical treatment can be significant, and an umbrella policy can provide coverage beyond your homeowners or renters insurance.
6. Property Damage — If you accidentally damage multiple cars in an accident, or if your children accidentally damage school property, the cost to repair these properties can be significantly high. This is when your umbrella policy can kick in to provide extra coverage.
Umbrella insurance is for everyone who has something to protect. It provides an extra layer of coverage beyond the limits of your standard insurance policies to protect you in case of unforeseen incidents that could lead to significant financial loss.
Contact a Westwood agent today to learn more about our umbrella insurance and how you may benefit from having this crucial coverage.
Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.
