Introduction
The events in life are uncertain and the possibilities of an unfortunate event like the legal action, an accident, or any other misfortune can set you back financially. In such circumstances, choosing the right insurance policy is perhaps the best way to guard yourself, and your property against the unknown.
One such solution available with Direct General Insurance and many other insurance companies is the Umbrella Insurance – it provides extra liability coverage than your current policies. In this article, we highlight what Umbrella Insurance means, its aim, ways in how it operates, and to whom it is relevant.
What is Umbrella Insurance?
Umbrella Insurance works as the additional coverage layer for you to get when your current insurance limits are exhausted. This is personal related occurrence policy that offers coverage for claims relating to personal injuries to third parties, their property and for some other circumstances like libel, slander or infringement of privacy.
How does umbrella insurance operate?
Umbrella Insurance works on exceeding or beyond the major underlying Homeowners, Auto, or Boat Insurance policies limit of your coverage. For instance, if a person has an accident in your compound and sues you then your Homeowners Insurance may not cater for the whole amount, Umbrella Insurance will supplement this amount.
Umbrella Insurance can cover a wide range of incidents including:
- Bodily Injury Liability – This is if you or a member of your household end up causing harm to another person, Umbrella Insurance will assist come steer the legal process and any related cost.
- Property Damage Liability – This part of Umbrella Insurance keeps you protected for any property damage you caused to someone’s property once it goes beyond the limits of your Homeowners or Auto insurance policy.
- Slander, Libel and Invasion of Privacy- should you be sued for defamation or invasion of Private property, Umbrella Insurance will compensate you.
- Some Specific Actions – This policy offers coverage if a person puts a lawsuit against you attributing to an intentional act that lead to physical contact or destruction of property.
Who Needs Umbrella Insurance?
Umbrella Insurance is most appropriate to individuals with substantial net worth and a lot of financial properties or those at a higher risk of incurring a legal liability. It’s typically recommended for:
- High Net Worth Individuals – Umbrella Insurance can will protect your property, or if your annual income is high or if you have a sizeable savings amount, in the case of a court case.
- Homeowners/Renters – As much as you’d want to think that it cannot happen to you, if someone slips and falls on your stairs, or someone sustains an injury in your building, you could be held legally responsible for their injuries.
- Those with Teenage Drivers – Teenage drivers extra are known to be a cause of many accidents and hence the liability claims. Umbrella Insurance can be appended to your current Auto Insurance policy to deliver further coverage.
- Dog Owners – Dangerous or aggressive breeds; as a dog owner you will be held responsible for any damages caused by your dog. Umbrella Insurance can aid to mitigate related costs.
Why Get Umbrella Insurance?
Today it has become more and more acceptable to file a lawsuit, and one single day can bring a person to financial disaster. However, with Umbrella Insurance you will shield you and your family from the effects of liability claims. Besides all your policies offered, Umbrella Insurance secures you from facing a significant financial loss in any activities which will give you some sort of relief to attend to more on matters that really are important in life.
Therefore, Umbrella Insurance is a good investment that is incorporated into comprehensive insurance planning for individuals with higher risks to assume high amounts of liability. Whether you are driving your personal car or operating a commercial vehicle for business purposes, Umbrella Insurance goes a notch higher than your present insurance to give you the assurance you need in an uncertain world.