Understanding Umbrella Insurance
– Stacy J. Flynn, AFIS, CIC, FLMI, ACS
In today’s increasingly litigious society, protecting your assets and future financial well-being has become paramount. While standard insurance policies like auto, home, and renters insurance offer essential coverage, they may not always be enough to safeguard against substantial liability claims. This is where umbrella insurance comes into play. In this article, we will explore the concept of umbrella insurance, its benefits, and why it may be a valuable addition to your insurance portfolio.
What is Umbrella Insurance?
Umbrella insurance is a form of liability insurance that provides an additional layer of protection beyond the limits of your existing policies. It acts as a safety net, covering you for claims that exceed the limits of your primary insurance policies, such as personal liability, auto liability, or homeowners liability. Umbrella policies are designed to offer broad coverage, protecting you against various potential risks.
Coverage and Benefits:
Increased Liability Protection: Umbrella insurance typically offers coverage in increments of one million dollars or more. This additional coverage can help protect your assets, such as your home, savings, investments, and future income, in the event of a substantial liability claim or lawsuit.
Broader Coverage: Umbrella policies often provide coverage for liability claims that may not be covered by your primary insurance policies. This can include libel, slander, false arrest, invasion of privacy, or liability related to rental properties you own.
Worldwide Protection: Unlike some primary policies that might only cover incidents within your home country, umbrella insurance can provide coverage worldwide. This can be particularly useful if you frequently travel internationally or own properties abroad.
Legal Defense Costs: In addition to the increased liability coverage, umbrella insurance can also help cover legal defense costs, including attorney fees, court expenses, and settlements or judgments against you, up to the policy limits.
We will discuss who needs umbrella insurance in a future post.
Protect your legacy. Insure your future.
The Legacy Insurance Group
www.legacyinsuranceia.com
