You may be wondering what is umbrella coverage, maybe you never even heard of it. Well, you have come to the right place. Umbrella coverage – though it does not cover umbrellas, uses the term in a different sense. It covers everything that your regular insurance does not cover. Keep reading to find you why you want to consider getting Umbrella Coverage.
Who Needs it?
Not everyone needs umbrella coverage – it is just an added protection to those with certain risks and liabilities. For instance, if you own property, have significant savings or own things that can cause lawsuits (pools, trampolines, dogs – yes dogs) you may want to look into Umbrella Coverage. It also can help you if you ever get sued from certain activities such as serving on a non-profit, participating in sports (where others can get hurt) or are a landlord.
Bodily Injury Liability
Even though your auto insurance already has bodily injury built into it, adding on umbrella insurance gives you even more coverage. Bodily injury covers the damage to another person’s body; normally this would be a car accident in which you are at fault. This covers medical bills and possible liability claims. This type of extra assurance is helpful for those that travel longer distances, have a risky driving record and those who have teenage drivers.
Property Damage Liability
Same as the bodily injury liability, property damage liability is already built into your homeowner’s insurance, but with umbrella added it gives you even more coverage. This type of liability covers damage you’ve done to another person’s property. This umbrella coverage will kick in once you reach your claim limit under your normal homeowner’s coverage. This is typically useful for business owners, landlords and those at high risk for property damage.
Other Liabilities
There are many more liabilities umbrella coverage has to offer that you may not think about.
- False arrest
- Slander – false spoken statement
- Libel – false written statement
- Dog – bites
- Intoxicated guest at your party
Cost
The ultimate question is, is how much does umbrella coverage cost? Depending on your insurance agent it can usually cost anywhere from $150-$300 per year for a $1 million policy. The cost per year also has to be decided on factors you have for instance: net worth, location, credit history, driving record, how much of a risk you are, and if you have teenagers in the house.
Once you decide if umbrella insurance is for you, you are protected from much more risk and unnecessary amount of bills you may have to pay. Keep in mind you do not legally need umbrella insurance it is just another precaution to those that are at a higher risk than others like parents with teenagers, people with a bad driving record and those with ‘vicious’ dogs.