Umbrella insurance is a form of personal liability insurance covering certain liability claims not protected by existing policies. Umbrella insurance can cover injuries, property damage, lawsuits, and other personal liability situations. This is a popular and valuable option for individuals or families looking for extended protection against unexpected and significant liability claims. It provides an extra level of security, ensuring people are protected in case of an unforeseen event.
You cannot obtain umbrella insurance as a stand-alone policy. Think of it as an additional layer of protection that comes into place once the underlying limits of your primary insurance policies are exhausted. You may have to meet certain minimum liability limits on your primary policies.
Here’s How It Works
An umbrella insurance policy can offer vital protection for your assets in two ways. Firstly, it can provide coverage when your existing homeowners, auto, and boat insurance policies reach their limits. When this happens, umbrella policies kick in to cover additional costs and protect yourself from financial strain. Secondly, an umbrella policy extends coverage to claims that might be excluded by other policies. This can include claims for false arrest, libel, slander, and liability related to rental units the policyholder may own.
Umbrella insurance typically covers:
- Injuries
- Damage to property
- Certain lawsuits
- Personal liability situations
Coverage Limits
Personal umbrella insurance coverage limits range from $1 million to $5 million, and sometimes more than that. If you are faced with a converged claim or lawsuit that exceeds the liability limits of your primary insurance policy, the umbrella policy will go into effect to cover the excess amount. That is, up to the limit of the umbrella policy.
Coverage Range
Personal umbrella insurance can give you protection for various liability situations such as bodily injury, property damage, and other personal liability issues. It may also cover other risks that may not be covered by your primary policies.
Legal Defense
Coverage for legal defense costs may be covered in a personal umbrella insurance policy. This can include attorney fees and related costs. This measure can come in handy when expenses are substantial, especially with complex legal cases.
Affordability
Generally, personal umbrella policies are considered a cost-effective measure. Premiums are usually low compared to the added protection the policies provide.
Who Needs Personal Umbrella Insurance Policies
Personal umbrella policies are helpful for a wide range of individuals looking for protection for significant assets. People that tend to look for these policies include:
Homeowners – They tend to face various liability risks concerning accidents happening on their property such as injuries or property damage. A personal umbrella policy can protect homeowners against lawsuits exceeding the liability coverage provided in the home insurance policy.
Vehicle owners – If you own a car you face the risk of being involved in an accident that could lead to costly lawsuits. Personal umbrella insurance extends coverage beyond the liability limits of your auto insurance. This ensures you are adequately protected.
Pet owners – You may own a pet, like a dog that has the potential to cause harm to others. A personal umbrella policy can give you coverage for these instances, as they may not be fully covered by your homeowners or renter’s insurance.
Better Policies, Better Protection for You
Protect your assets with umbrella insurance from COBIA Insurance Agency. We’ll help you by providing an extra layer of protection that goes beyond your primary policies. When you work with the COBIA team you can easily safeguard your assets. Take a moment to discover comprehensive insurance solutions from COBIA Insurance Agency.
Please contact us to learn more about how we can help you with adequate insurance protection. You can also request a quote from us by clicking here. We look forward to working with you!
