When you purchase insurance, you do so to protect yourself, your car, and your property against the worst-case scenario. Therefore, the chances are low that you will ever be involved in a situation that leaves you needing to pay more than your policy will provide. However, if you are involved in a scenario where you need additional coverage, an umbrella policy can get you off the hook. Look at precisely what umbrella insurance is and if you could benefit from it.
Umbrella insurance is also called personal liability insurance. By either name, this coverage helps you with issues that extend beyond the scope of your regular policy. For example, imagine you cause a car accident that puts you on the hook for $500,000 in damages, and you only carry $300,000 in liability insurance. You would have to pay the additional $200,000 out of pocket to cover the overage. However, an umbrella insurance policy would cover the difference between what your primary insurance covers and what you still owe.
Additionally, your umbrella policy will extend to situations your homeowner’s or auto insurance will not cover. Here are a few examples:
- Your dog gets out of your yard and bites a neighbor. Your neighbor sues you for damages.
- Your child gets in a fight at school and breaks another child’s nose. The parents sue you.
- A group of people get food poisoning at a party you hosted and sue you.
- Your teen throws a party at your house. One of the guests consumes alcohol and is arrested for drinking and driving. You, as the teen’s parents, are sued.
Umbrella policy coverage limits start at one million dollars and apply anywhere globally. It is inexpensive insurance for the amount of coverage you receive. A notable advantage of umbrella insurance is that it applies to all your policies: home, auto, and even covers legal fees. One umbrella policy can give you peace of mind for any scenario. These personal liability insurance policies do not just protect you; they extend to cover your spouse and all family members living in your household.
So what doesn’t umbrella insurance cover? Personal liability lines do not cover your own injuries or property damage. You will need other types of insurance, such as health insurance or collision coverage on your auto policy. In addition, it will not cover liability related to your business or contracts you willingly enter.
Insurance needs are unique, so consult a trusted professional to guide your needs. You might consider purchasing an umbrella policy if any of the following apply to you:
- Property owner
- Own things that can lead to injury lawsuits (pools, dogs, trampolines)
- Participate in sports
- Have an inexperienced driver in your household
- Work with nonprofits or in a public capacity
To add to the peace of mind that comes with an umbrella policy, talk with John Johnson Insurance Services. They will help you determine the right amount of coverage for your needs.
John Johnson Insurance Services is your trusted insurance agency, providing reliable and comprehensive coverage options for individuals, families, and businesses. We offer a wide range of insurance policies to meet your unique needs. Contact us today for personalized guidance and support.
We look forward to ensuring you have the right insurance solutions for your needs.
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