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Personal Umbrella Insurance Coverage

Personal Risk UmbrellaYou might’ve heard of umbrella insurance coverage but you might be scratching your head wondering, “What is it?”

Well, I’m glad you asked. Umbrella insurance is extra liability insurance and designed to help protect you from major lawsuits and claims. In short, umbrella insurance is yet another way to safeguard yourself, your assets, and your future.

Umbrella insurance works in two ways; by providing liability coverage above the limits of your homeowners, auto, and boat insurance policies and by providing coverage for claims that may be excluded by other liability policies (think false arrest, libel, slander, and liability coverage on rental units you own).

Overall, umbrella insurance will help provide coverage for:

  • Injuries
  • Damage to property
  • Certain lawsuits
  • Personal liability situations (as listed above)

Many times, many policy holders feel that their homeowners or auto insurance should readily cover some of these situations. And while that is true, sometimes, umbrella insurance can help cover beyond the limits of the homeowner or auto policy you hold. There are multiple scenarios in which umbrella coverage can help protect you. We’ve outlined a few scenarios below.

Property Damage Liability– it will help cover the damage or loss to another person’s real property.

Some examples of include the following:

  • At fault accident- damage to another property as a result of an accident where you were at fault
  • Your pet- damage claims incurred with your pet rips a friend’s valuable to shreds
  • Your child- damage your child inflicts upon school property

Bodily Injury Liability– covers the cost of damages to another person’s body.

Some examples include the following:

  • Car accident- injuries you inflicted upon other parties due to a serious auto accident in which you were at fault
  • Your pet- harm caused to others as the result of your dog
  • House guests- injuries sustained by a guest in your home due to a fall
  • Neighbor’s child- injuries sustained by a neighbor’s child who falls while playing at your house

Owner of Rental Units– protection against liabilities you may face as a landlord.

Some examples include the following:

  • Tripping- someone tripping/stumbling over a crack in the sidewalk of your rental property and suing you
  • Tenant’s dog- Your tenant’s dog bit someone and you are being held responsible for the injuries

While umbrella insurance is an excellent and protective insurance, there are certain criteria one needs to meet in order to obtain it. The best way to see if you’re qualified for umbrella insurance is to talk to your insurance agent about your current coverages (homeowners and auto) and how you can factor umbrella coverage into your policy.

All in all, umbrella insurance is yet another level of protection you can add to your policies as risk-mitigation. The future is unpredictable and we have no idea what’s in store and while we never wish any ill-will upon you or your family, any of the above scenarios could potentially happen.  Why not protect yourself and your family for the cost of just loose change a day? At Ramey King, we’d be happy to sit down and talk to you about the various ways umbrella insurance can protect your hard work and assets.

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