Understanding Why Personal Umbrella Insurance Could be Needed
Homeowner’s or auto insurance policies generally cover most of the liabilities that are incurred in an accident. However, there are limitations to what these policies will payout, and if there isn’t adequate coverage, the insured party could be sued for the remaining liability amount. Other situations where the insured is sued may not be covered by any insurance they have taken out. For instance, if a person is sued for slander, libel, false arrest or anything similar, the liability insurance associated with their home or auto polices are not going to cover those lawsuits.
To have adequate liability insurance, or insurance for other non-covered lawsuits, a policyholder may want to take out a Personal Umbrella Insurance policy. Umbrella insurance covers items that homeowner’s or auto policies do not cover, such as suits for libel, slander, and much more. They also help cover the leftover liabilities that may exist after an accident that home or auto insurance policies couldn’t cover. Having the extra coverage can help people when they are facing a situation in which they could be sued. Instead, the extra money is available through this type of policy to pay off their liabilities or to cover a judgment against them after they’ve been sued.
Along with lawsuits and leftover liabilities, Personal Umbrella Insurance will help pay any liabilities that homeowner’s insurance couldn’t cover for injuries sustained by someone who fell on the insured’s property. Injuries a child may have sustained in a fall on the insured’s property, injuries caused by the homeowner’s dog or coverage for when their dog chews up someone’s property are covered as well. It also covers liabilities for a rental properly owner if someone falls on the property due to maintenance issues or if a tenant’s dog were to attack someone on the property. Umbrella insurance is a good way to protect the insured and their assets if their homeowner’s or auto insurance cannot cover all of the liabilities for which they are responsible. Without the extra protection of umbrella insurance, the insured could be risking their home and other assets if they are sued. Get in touch with us for more details.
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