While most of us have heard of the term “umbrella insurance”, many do not know what this type of insurance covers. Umbrella insurance is additional liability insurance. It is meant to protect individuals from costly lawsuits and claims. Umbrella insurance will protect your personal assets as well as your future earning capacity in a number of ways.
How Umbrella Insurance Protects Your Financial Well-Being
Umbrella insurance provides extra liability coverage that extends beyond the limits of your regular homeowners, automobile and watercraft/specialty vehicle insurance policies. This insurance coverage is set up to kick in as soon as the liability on your other insurance policies has been maxed out. Umbrella insurance even provides coverage for unique claims that are commonly excluded from other liability insurance policies. Examples include:
- False Arrest
- Liability coverage on rental units that you own
If you are still unclear on what umbrella insurance covers, do not fret. In a nutshell, this insurance offers coverage for certain lawsuits, damage to property, injuries and unique personal liability situations.
Umbrella Insurance is Necessary Even if You have Homeowners and Automobile Insurance
While you might have spectacular homeowners and automobile insurance, these policies have limits. They do not apply to all types of liability and when they do, they are capped. Umbrella insurance provides you with extra insurance beyond the limits of your current policies. It even provides you with coverage for special situations that the other policies do not cover. While this extensive insurance seems like it might be uber-expensive, the rates are much more affordable than most think.
Specific Types of Umbrella Insurance Coverage
Umbrella insurance covers many things including bodily injuries. This refers to the cost of damages to someone else's body. For example, if injuries to other parties are caused as a result of an auto accident where you are at fault, umbrella insurance will cover the cost of the medical bills and liability claims. It also covers the harm caused to others if your pet attacks them, injuries suffered by guests in your home due to a fall and injuries suffered by those who are hurt while on your yard.
Umbrella insurance also provides property damage liability coverage in the event that you cause damage to another's property or vehicle in an accident that is your fault. It also covers damage that your pet(s) cause to others' property and your child's accidental damage to school property. The insurance can even protect those who own rental units. Landlords who own properties should absolutely have umbrella insurance.
The liabilities describe above are applicable to just about everyone. Most of us drive a vehicle, own a home and have a pet or child. We can't control everything. Bad things can and will happen. This is precisely why you need umbrella insurance. Your single umbrella insurance policy will cover all the underlying policies that you own from home and automobile insurance to watercraft/specialty vehicle insurance.
Florida Coastal Insurance
Reach out to Florida Coastal Insurance today to learn more about umbrella insurance. We'll review your unique situation and provide you with a quote. Do not hesitate to contact one of our insurance professionals today.