Demont Insurance Agency Blog

What is Umbrella Insurance?

Umbrella insurance is a type of additional policy that is not mandatory, but it can be extremely useful when faced with a legal situation. It is extra liability insurance that can protect you from lawsuits involving injuries that occurred on your property, and various other situations where a claim may be filed against a homeowner.

Umbrella insurance can help to protect your home and personal property in two ways. First, it provides extra liability coverage that pays when you go over the limit of your homeowner’s insurance liability coverage. And second, it provides coverage for any claims excluded by other types of liability policies. This can include everything from slander and false arrest to coverage on rental units you may own.

Breaking Down Umbrella Insurance

Umbrella Insurance provides coverage for injuries to another individual, damage to their property, certain types of lawsuits and personal liability situations. While it is true that homeowners’ insurance policies provide coverage for some of these situations, your standard home insurance coverage doesn’t take care of all liability issues. When you use all the money that your homeowners’ insurance policy provides for liability cases, you will end up having to pay for the remainder of legal fees or medical costs out of your own pocket.

There are often some situations that may fall through the cracks of your current home insurance plan, which can leave you paying out a hefty fine. That is where umbrella insurance steps in. It can take care of many of those obscure legal issues so that you can avoid paying expensive legal fees.

The Types of Coverage Provided by an Umbrella Insurance Policy

When all other liability insurance coverage you have is exhausted, umbrella insurance kicks in and helps pay out the difference. There are several types of coverage umbrella insurance can provide:

Bodily Injury Liability

This type of coverage takes care of the cost of damages to another person including their medical bills if they become injured on your property. Examples of this can include injuries caused by a fall due to an unsafe walkway, or an injury caused by your dog. It can also include injuries that a contractor endures while working on your property such as a roofer or electrician, if they are not bonded or insured.

Property Damage Liability

This is coverage that takes care of the cost of damage caused by loss to someone else’s property such as damage to their vehicle, damage to their valuables caused by your pet, or accidental damage to school property caused by your child.

Coverage for Property Owners and Landlords

This type of umbrella coverage protects against liability that you could face if you are a landlord. If you have a tenant or a visitor who trips over a damaged sidewalk, you could end up with a lawsuit. Umbrella insurance will take care of these legal costs so that you don’t have to pay anything out of your own pocket.

This special type of coverage can help pay for a broad range of legal issues, which makes it a very beneficial policy for all homeowners and property owners to have. Some of the lesser-known types of coverage that umbrella insurance can help with include if you are sued for slander, malicious prosecution, shock and mental anguish, false arrest, detention, or imprisonment.

Who Should Take Out an Umbrella Insurance Policy?

It can be difficult to predict the hardships we face throughout our lives. That’s why umbrella insurance policies exist to help provide an additional cushion when things don’t go as planned. Umbrella insurance is a great option for individuals who are likely to end up in a situation where they could be vulnerable to lawsuits. This can include those who own things that could lead to a serious injury, such as a pool, trampoline, or a large dog that isn’t kept on a leash. Those who engage in certain activities or occupations such as landlords, coaches for kid’s sports, or those who do volunteer work can also be at a higher risk of enduring a lawsuit. This can even include anyone who participates in sports where they can easily injure another person such as hunting, or surfing.

An umbrella insurance policy can be beneficial to homeowners, property owners, and renters. An unexpected lawsuit can have a grave effect on your life and your finances. Make sure that you protect the things that matter most to you by considering an umbrella insurance policy today. Keep in mind that while there are many things that an umbrella insurance policy will protect you from, there are still some things that this type of policy will not cover. Business losses or contracts and criminal or intentional actions are not covered by umbrella insurance plans.

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Call our office at (850) 942-7760 to learn more about all of our homeowners insurance and other personal and commercial insurance options.

Demont Insurance Agency, Inc. The Insurance You Need, The Assurance You Deserve.

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