Sometimes it can feel as though risk is hiding around each corner, and many of us rely on the liability insurance that is included in our home or auto insurance policies. However, with an increasingly litigious society and growing base of assets, it’s important to make sure you are fully protecting yourself with umbrella liability insurance.
Understanding Umbrella Liability Insurance
Umbrella liability insurance is an additional layer of protection that supplements your other insurance policies – home, auto, boat, etc. – in the event of a bodily injury or property damage claim or lawsuit that exceeds the plan’s limits. For example, if you carry the minimum requirements for your auto insurance policy in California ($15,000 per individual and $30,000 per accident), you may be left with a large bill if you cause an accident that results in serious injury to multiple people.
An umbrella insurance plan provides three major advantages:
· Additional coverage of $1 million or more
· Added coverage for defense costs in the event of a covered lawsuit
· Liability coverage for some lawsuits not covered by your underlying home or auto insurance policies
Simply put, when your other insurance policies reach their limits, your umbrella liability coverage kicks in. Additionally, if you are being sued, your umbrella liability insurance can cover your attorney’s fees and court costs associated with a covered loss.
While your underlying policies – home, auto, boat, etc. – cover many things, there are some potential lawsuits they would not cover. Your umbrella policy provides coverage for many other lawsuits, including slander, libel, wrongful eviction, and false arrest. It may also cover things such as your nonprofit work on a Board of Directors, a boat you rented at the lake, or a car you rented while on vacation in another country.
Coverage that Fits My Family’s Needs
Whether its for your home or professional life, finding coverage that fits with your unique needs requires the guidance of a trusted insurance professional. Your Clemente Insurance professional works with you to develop both business and personal insurance policies that fit within your family’s needs and budget.