Personal Umbrella Insurance
You’ve got liability insurance included in your homeowners and auto policies. But in today’s litigious environment, the coverage on these policies may not be enough. A large auto accident or significant injury to a third party at your home could be financially devastating without additional liability insurance to cover the legal and settlement costs involved.
Enter personal umbrella insurance. At Flagler Insurance Agency, it’s important for us to discuss this policy option with clients to protect your assets adequately.
What Is Personal Umbrella Insurance?
Umbrella insurance provides additional coverage to the liability insurance already included in your auto, home, and/or watercraft insurance policies. The umbrella policy steps in to help pay for expensive scenarios in which medical expenses, jury awards, and settlements surpass the limits of your basic auto, home, or watercraft policies. Consider it a form of asset protection.
Umbrella insurance provides liability coverage for:
- Bodily injury to others
- Property damage to others
- Legal defense costs
- Lawsuits such as defamation, libel, slander and invasion of privacy
How Does a Personal Umbrella Policy Work?
Umbrella insurance kicks in after you exhaust your primary policy liability limits, such as homeowners and auto insurance. Here are some examples of how an umbrella policy works:
You are responsible for a serious car or watercraft accident.
Expenses quickly add up, especially if you’re responsible for many people’s medical bills. Your auto or boat insurance policy would pay first, up to the limits of your coverage, followed by your umbrella insurance.
You inadvertently injure someone.
If you or a family member injures someone by accident, umbrella insurance will pay when your auto or home insurance is exhausted. Let’s say your daughter inadvertently throws a soccer ball into someone’s face, inflicting severe harm. First, your homeowners liability insurance will pay, followed by umbrella insurance.
Your son is sued.
Let’s say your teenage son makes a defamatory online comment, and you are sued for a significant amount. Umbrella insurance can cover legal fees and judgments.
Your child inadvertently damages someone else’s property.
If your child inadvertently damages someone else’s property, your homeowners policy may pay out first, followed by umbrella insurance if the damage exceeds your liability limits on your homeowners insurance.
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