How Personal Umbrella Insurance Works
Let’s say you have a homeowner’s insurance policy with a personal liability limit of $400,000. A guest at a party in your home trips and falls down the stairs and ends up getting seriously injured, resulting in some very expensive medical bills.
Imagine that your friend sues you and the court awards him a judgment of $900,000. Your homeowners insurance liability should cover $400,000, but what about the other $500,000? If you do not have a personal umbrella insurance policy, you’ll need to find a way to pay that money out of pocket, whether you take it from your retirement account or sell assets to come up with the funds.
Who Needs Umbrella Insurance?
Unfortunately, the type of accidents that result in high costs can happen to anyone. For many people, the decision to get umbrella insurance depends on how comfortable they are with the risk of being sued.
However, there are few cases where umbrella insurance makes more sense because you’re at a greater risk of being sued. These include:
- Renting out property
- Owning a swimming pool or hot tub
- Regularly hosting large parties
- Employing household staff
- Having an aggressive dog breed
- Having a teenage driver in the family
Our Umbrella Insurance Policies
In addition to covering the part of the judgment that your homeowners insurance does not pay for, an umbrella policy will also pay any expenses and attorneys’ fees related to the lawsuit that go beyond what your homeowner’s policy will cover. A typical umbrella insurance policy will cover:
Bodily Injury Liability
This covers the cost of damages to another person’s body. For example, it could cover the cost of medical bills or liability claims for injuries from:
- A guest falling in your home
- A neighbor’s child being injured while playing in your yard
- Damage caused to a visitor by your dog
- A serious car accident for which you are found to be at fault
This provides protection for liability you face as a landlord, such as a person getting injured by a hazard on the sidewalk of your rental property.
This covers the cost of loss or damage to another person’s property. For example, in a serious auto accident where you are at fault, it could cover the costs of damage to the vehicles involved.
Other Forms Of Coverage
- Libel and slander
- Malicious prosecution
- Mental anguish
- False arrest or imprisonment
Get In Touch With Burton & Company
Even with the best standard homeowners and car insurance policies, a major insurance claim or lawsuit could result in personal financial loss. Umbrella insurance from Burton & Company can help to protect your financial future. Get in touch with us today by phone at (888) 652-1325 or request a quote online, and our experienced agents will help you find a cost-effective personal umbrella policy with no obligation.