Today, no matter how much or how little you own, you are at risk of being sued by other individuals if an incident occurs. As a result, you could lose much of what you own if you do not have a sufficient level of liability insurance. While your basic insurance policy can protect you in many instances, there might be an incident that occurs in which you do not have the proper amount of coverage. However, arranging for an umbrella policy can give you the peace of mind and financial protection that you need.
What Is Personal Umbrella Liability Insurance?
Designed to provide an extra layer of coverage, umbrella insurance protects you against losses that are not covered by your existing homeowners, auto, watercraft, or renter’s policy. You must have an existing policy in order to obtain umbrella insurance. It provides an additional amount of your choosing for liability coverage. Most insurers have a limit beyond which you cannot obtain additional liability protection.
What Does Liability Insurance Cover?
Liability insurance is the part of your policy that is used to cover the cost of expenses incurred by an individual as the result of your negligence. These expenses include each of the following:
- Medical bills
- Rehabilitative therapy costs
- Loss of wages
- Legal defense representative fees
If the total cost of the expenses incurred by the injured party exceeds the limits of the liability portion of the at-fault person’s insurance policy, the courts can seize personal assets if no umbrella clause is in effect.