An auto liability insurance provides you protection in case you caused an accident, resulting in bodily injury and property damage. The plaintiff will make a claim on your insurance policy to recover damages up to its limit. Similarly, a homeowners’ insurance keeps you safe in the event a guest slips, trips, or falls from your potential hazard on your property or is bitten by your dog off your premises.
Umbrella insurance offers an added layer protection when a claim may exhaust your typical insurance, and you may have to cover the remaining damages from your pocket. If you are considering investing in umbrella insurance, it is essential to learn about its basics to ensure you are making an informed decision to mitigate your future risks.
What is Umbrella Insurance?
It is a type of liability insurance that is designed to complement and cover for your basic liability insurance policies, such as home, auto, and others. Umbrella insurance typically carries a much higher limit than other policies, and provide coverage for claims that go beyond the limits of your home or auto insurance. The main purpose is to protect your property and assets from any unexpected or unforeseen events, such as a vehicle crash causing serious bodily injuries and damages to the other party. If a lawsuit is filed and you have umbrella insurance, you will remain protected when your basic insurance does not cover all the damages.
Who and What Does Umbrella Insurance Cover?
People who are covered under your umbrella insurance policy may include:
- The insured and their spouse – they must be living together
- Household residents that are under the insureds care – everyone who is under 21 years of age
- Resident relatives
- Any person using a vehicle covered under the umbrella insurance of the insured
- Any business or person who is responsible for the insured, when they are using a covered vehicle
Typical umbrella insurance provides coverage for a number of things, including, but not limited to:
- Any property damage or personal injury caused by you or a family member. It may also cover the damages caused from a hazardous condition on a property you own. This may include liability arising from trampolines, swimming pools, pets, and others.
- Coverage for personal liability that may take place off your property, like your pet injuring the neighbor in their home.
- Legal defense fees
- Protection against false arrest, wrongful eviction, libel, or slander.
- An added layer of insurance for your assets, like vehicles, that is beyond the basic liability insurance.
While it is true that umbrella insurance is comprehensive, there are some exclusions, such as:
- Bodily injury or property damage intended or expected by the insured
- Damages to the insureds own property
- Liability from exotic vehicles, such as jet skis, golf cars, and snowmobiles
Effects of Umbrella Insurance on Personal Injury Cases
If you are facing a personal injury lawsuit or claim, you will get coverage for a legal defense, even if the plaintiff is not able to prove that you are at-fault. If you are found liable, umbrella insurance will kick in when your basic liability insurances run out, giving you peace of mind that you will not have to pay the damages from your own bank account.
Contact the Law Offices of Robert T. Edens, P.C. at (847) 395-2200 or online today to schedule your initial consultation, and discuss your personal injury case to evaluate your options.