To some people purchasing insurance probably seems like a crap shoot. Is this policy better than that policy, you may wonder? Or perhaps, for the mathematically challenged: What do all these numbers mean? Another problem may be that you want better coverage, but don’t think that you can afford the premiums. There is a way to protect yourself from being underinsured and that’s with the personal umbrella insurance policy.
What Is It?
A personal umbrella policy helps protect you and your assets by providing additional liability coverage above and beyond the limits of your homeowners policy should something happen. When the liability coverage of your original policy has been tapped out, the umbrella insurance will kick in. It can also provide liability coverage for claims that are excluded from your policy. Such claims include:
- Libel: Words that are written to damage your business or reputation.
- Slander: Words that are spoken to damage your business or reputation.
- False arrest
- Injuries on rental properties you own
- Malicious prosecution
- Mental anguish
What Else it Covers
Umbrella insurance coverage can also provide for:
- Damage to a vehicle or other person’s property
- Cost of damages to another person’s body (bodily injury)
- Certain lawsuits
If there are “gray areas” in your insurance policy, you don’t need to lose sleep over it. A gray area may be a freak accident such as the roof of your porch caving in injuring friends who were visiting. You have a group of people with serious injuries and their medical bills end up surpassing your insurance coverage. That’s when your umbrella insurance kicks in protecting you from complete financial devastation. Don’t be unprepared because you think it will never happen to you. Chances are it won’t, but what if it does? Are you sufficiently covered?