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If you’re in the market for an umbrella insurance policy, you may be wondering what these plans do and do not cover. Primarily, umbrella insurance policies cover excess liability claims, so they aren’t available for purchase to people who don’t have auto and homeowner’s insurance already.
To learn more about what these plans cover, keep reading.
What Is Umbrella Insurance?
Umbrella insurance is a form of supplemental liability insurance. It is very useful for people who feel they are at increased risk of being subject to liability suits. These policies protect you from liability claims that exceed your other insurance policy limits. For example, if you have an auto accident that results in a $500,000 claim but you only have $300,000 in coverage, umbrella insurance will pay the difference.
What Does Umbrella Insurance Cover?
Umbrella insurance provides coverage beyond the limits of your other insurance policies and for claims that aren’t covered by other liability policies. Umbrella insurance typically provides liability coverage for the following:
- Injuries
- Damage to property
- Some lawsuits
- Personal liability situations
What Isn’t Covered By Umbrella Insurance?
Umbrella insurance is only designed to cover your liability claims. Therefore, it does not provide coverage for any of the following:
- Your own injuries
- Damage to your own personal property
- Criminal or intentional actions that cause damage to someone else
- Liability you assume under a contract
Who Needs Umbrella Insurance?
Umbrella insurance is important for people who feel they have an increased liability risk. With an umbrella insurance policy, you can reduce the risks of you going bankrupt due to excess liability claims. To find out if a plan is right for you, it’s best to contact an insurance agent today.
Find Umbrella Insurance Now
Your umbrella insurance policy will protect you from excess liability. This will grant you peace of mind as you and your family go through the daily walks of life. To start shopping for a plan that suits you, call Insured For Life today. We’ll help you get started with a free quote on umbrella insurance.
