Umbrella insurance is a policy that can cover the gaps in many other types of insurance policies by answering some of life’s major “what if” questions. While it’s common to have many types of insurance policies, umbrella coverage can provide financial assistance for a variety of outlying situations.
Here is a basic guide to umbrella insurance to help you learn more:
What does umbrella insurance cover?
Umbrella insurance provides additional personal liability coverage for situations not included in other policies. The major liability issues umbrella coverage includes are bodily injury, property damage and legal coverage in certain lawsuits.
Umbrella insurance can help you in a variety of situations where another person is injured due to an accident. These might be events your auto insurance or homeowners insurance cannot pay for. Some examples include:
- A guest falls while visiting your home
- You’re at fault in a major traffic accident
- A neighbor is bitten by your dog
It can also cover you if you’re sued for certain things, including but not limited to libel, slander or false imprisonment.
What is not covered by umbrella insurance?
There are several key differences between umbrella insurance and other types of policies. For example, here are some things similar to those listed above are not covered:
- Damage to your personal property.
- Medical bills from a personal injury, typically your own.
- Any liability assumed under a contract.
Do I need umbrella insurance?
Hopefully, you will never have to worry about these or any other types of insurance claims, but umbrella insurance can mitigate your losses if something should go wrong.
Ultimately, the decision is personal and might depend on numerous factors including your property type and location, how many vehicles you own and what your existing home and auto insurance limits are.
The more you know about your options, the greater peace of mind you’ll have. Discuss with an insurance professional to find out what makes the most sense for your situation.
About the Author
Cal Palmieri & Al Mussi
Al Mussi and Carol-Ann Palmieri have been Realtors for more than 30 years. They established their team, "The Al and Cal Realty Group" in early 1990. They did this to give their clients greater exposure as well as enhanced availability, and that all important second opinion. Quickly they became a trend setting team earning numerous production awards and the respect of their peers.
Al is a father of 4, grandfather of 5, a martial arts enthusiast, studying the discipline of Hapkito. He loves to garden and golf.
Carol-Ann is a former US Marine, a private pilot, avid kayaker and dabbles in pastel painting.
Al and Cal are committed to providing their clients with unsurpassed service, staying abreast of current market trends and technology. Their goal is provide such unbelievable service that you will refer them to your family and friends.
