While a personal umbrella insurance policy may seem unnecessary, there are good reasons to have one. A personal umbrella policy pays for losses after you have exhausted your primary insurance coverage. It can cover your home, auto, motorcycle, boat, RV and more. Your independent insurance agent will be able to advise you on whether you need it or not.
A personal umbrella policy usually has high limits of liability and the primary reason to carry a personal umbrella policy is to protect your assets from an unexpected occurrence such as a disastrous accident in which you are held responsible for damages or bodily injuries.
Following are some examples of various personal umbrella coverages:
Bodily Injury Liability
- This covers injuries to other parties, as a result of a serious auto accident your vehicle caused
- Injuries sustained by a guest in your home from a fall or injuries endured by a neighbor's child playing in your yard
Property Damage Liability
- Covers damage to another person's tangible property. Such as a vehicle or damage caused by your child
Owners of Rental Units
- Protects against liability as a landlord such as cost of liability claims as a result of:
- Someone falling down because of a broken step on your rental property and suing you for damages
- Your tenant causing injuries to someone
Things not covered by an umbrella insurance policy:
o Damages you caused on your own property
o Losses connected to your business or your business property
o Business-related liabilities such as a malpractice lawsuit
o Criminal or intentional actions
o Liabilities connected with a contract, oral or written
The best advice you can get on whether or not a personal umbrella policy is beneficial to your particular needs is from your reliable independent insurance agent. Remember, with an independent agent you’ll get unbiased recommendations. They are not tied or committed to any one insurance brand, so shopping for the best rates and best quality insurance is what they do best.