The typical homeowner’s insurance plan will cover more than just the home itself, often providing some personal liability protection for a number of perils, acts, and accidents. For instance, if the homeowner’s dog bites a visitor or if a visitor slips and falls and then a lawsuit is filed (or a claim made), this built-in protection can be very helpful for the policyholder who, otherwise, could be financially devastated as a result. However, a typical homeowner’s insurance plan will not cover everything that can go wrong and, certainly, to the extent that monetary damages can accrue… Most homeowner plans have coverage limits that will sometimes not even come close to meeting the financial obligation of one who is being sued and thus faced with a monetary judgment. In regards to auto insurance, the same often holds true. So, to safeguard yourself from financial responsibilities that can sometimes result in ruinous damages, (due to one’s standard policy limits, be they home, auto, or otherwise, not being sufficient), it’s crucial to protect yourself by purchasing good umbrella insurance.
An umbrella policy is a kind of supplemental insurance that assists by protecting a policyholder from the repercussions of big liability claims. It accomplishes this by both providing coverages beyond the usual limits in a homeowner or other policy type, as well as for covering various perils that may be excluded from many policies.
An umbrella policy is not just for the wealthy as it works well for all who have even more modest assets that could, nonetheless, still be vulnerable should a lawsuit ever be implemented. Outside of protected accounts, such as 401(k)s, people who have worked hard to accumulate assets during their working lives are potentially exposed to losing it all if not properly protected.
Good umbrella insurance plans are activated only if other insurance coverage has been exhausted or if the cause of whatever loss is excluded from one’s existing insurance plan. Once a claim is either accepted or rejected by the insurer (or if the policy limit has been reached), then one can submit an umbrella policy claim to the insurer.
Umbrella insurance is all pretty universal in its makeup, although it can range in what it covers. Most plans will provide extra added financial protection for injuries, property damage and personal liability. The personal liability coverage can include financial protection for lawsuits in which slander or libel is alleged and for other non-injury type cases.
The big plus in having good umbrella insurance is the extra added coverage it gives for a myriad of other liability insurance plans. This assists in keeping a policyholder safe from being fully financially responsible for judgments that exceed the limits on his or her standard home, car, or other insurance plans.
