Umbrella Policies
In today’s highly litigious world dominated by lawsuits, it is recommended that every individual protects himself by obtaining a personal liability umbrella policy.
Umbrella policies provide an added buffer to both, your home insurance and car insurance policies and help to cover assets that may be at risk. In the event of a lawsuit, if your liability coverage is inadequate, having an umbrella policy will help protect your home, your car, and anything else that can be possessed by the insurer.
Before buying an insurance policy, it is important to determine what assets are being covered and what the probability of getting used is. If you have a swimming pool, sauna, play area with swings, trampoline etc, an umbrella policy will be a good bet.
When you buy a personal liability umbrella policy, you are typically, buying a broader insurance coverage with higher liability limits. Personal liability umbrella policy coverage will include personal injury, property damage or bodily injury-which may be caused by you, your pets, or your dependents. You will also be covered in the event of false imprisonment, false arrest, defamation suit, invasion of privacy, eviction, and malicious prosecution.
Umbrella policies rear their heads once your liability insurance in your homeowners or car insurances has run out. They cover all expenses over and above the limit of the home and car insurance policies as per the amount selected by you. Many companies will only issue you an umbrella policy if you have both your car and homeowners insurance with them. Umbrella policies are cheaper because they are only added protection. In the event of a contingency, most of the payment will be from the home or car insurance and only the balance will be on the umbrella policy.
However, there are some umbrella policy exceptions as well. Umbrella policies are different in every state, so depending on where you live, your umbrella coverage may or may not cover you for everything you may be sued for. Some policies may not include punitive damages or punishment for intentional acts. There will always be some loop hole in the umbrella policy. Ensure that you talk to the insurance agent and are aware of al the possible coverage as well as exclusions before buying an umbrella policy.