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What Is Personal Umbrella Insurance and Do I Need It?

There are lots of different insurance policies out on the market, and each one provides a unique type of protection to help offset some sort of risk. You more than likely have auto and homeowners insurance, which are common types of coverage, but you might be new to personal umbrella insurance, without a clue in the world as to what it is. You can rest assured it has nothing to do with protecting you from the next torrential downpour you experience while out for a stroll in a rain storm.

Basically, personal umbrella insurance is designed to go above the current limits of your insurance coverage to protect you from major lawsuits or claims. If someone takes you to court over an automobile accident, your auto insurance will cover your costs up to the maximum policy limit. Personal umbrella insurance is designed to pick up the slack once the original policy has exhausted its benefit.

This type of insurance also offers protection for claims like false arrest, slander, libel, and liability coverage on rental units.

What Is Covered With an Umbrella Policy?

While personal umbrella insurance goes beyond the call of duty to protect you from things your regular insurance might not cover, perhaps you’re still a bit fuzzy on what kind of protection these policies have to offer.

One of the key areas of protection deals with injuries to a person’s body. An umbrella policy will cover the cost of medical expenses for someone injured in an accident that was determined to be your fault. It will also cover damages from injuries sustained during a dog attack, a guest that sustained bodily harm during an accident in your home, or even a child who gets hurt playing with your kids in the backyard.

Not only does umbrella insurance protect the body, it protects property too. Any damage sustained by a vehicle as the result of an accident deemed to be your fault will be covered. If you were to damage a priceless piece of property at a friend’s house, this too would be covered.

If you were to be sued for slander, which is defined as a spoken statement that is deemed injurious to another person, this type of insurance will cover the claim or settlement.

Why You Need an Umbrella Insurance Policy

You might be thinking that you already have enough insurance, but is there really such a thing as having too much protection? Your current homeowners and automobile insurance only goes so far, so what happens to you and your bank account when the policies are all used up? Do you have the financial resources available to pay for the rest of the damages or injuries? Can you afford to buy your friend a new rug after your dog decides to eat the old one for lunch?

There are many unexpected occurrences in life, and it is always better to have protection and not need it, then to need it and not have it. Having an umbrella policy will help you sleep a bit better at night knowing that you are prepared for the unexpected.