Umbrella Insurance: How It Works & What It Covers

In today's unpredictable world, protecting yourself and your assets is crucial. While you may have several insurance policies in place, there is one type of coverage that often goes overlooked but can provide invaluable protection€”umbrella insurance. This post will delve into umbrella insurance, how it works, and what it covers, highlighting the importance of this additional layer of financial security.

What is Umbrella Insurance?

Umbrella insurance is a type of liability insurance that goes beyond the limits of your existing policies, such as auto or homeowners insurance. It acts as an extra layer of protection by providing coverage for claims that exceed the limits of your primary insurance policies. It is designed to safeguard your assets and future earnings in the event of a significant liability claim or lawsuit.

How Does Umbrella Insurance Work?

To obtain umbrella insurance, you typically need an underlying policy, such as auto or homeowners insurance. The coverage provided by an umbrella policy kicks in once the limits of your underlying policies have been exhausted. For instance, if you are involved in a severe car accident, and the resulting liability claim exceeds the limits of your auto insurance, your umbrella policy will cover the remaining costs up to the coverage limit specified in the policy.

What Does Umbrella Insurance Cover?

Umbrella insurance provides coverage for a wide range of liability claims. Here are some common scenarios that umbrella insurance typically covers:

• Bodily Injury Liability: If someone is injured on your property or due to your actions, umbrella insurance can cover medical expenses, legal fees, and other costs associated with the injury.
• Property Damage Liability: If you cause damage to someone else's property, such as a car accident where you are at fault, umbrella insurance can help cover the costs of repairing or replacing the damaged property.
• Libel, Slander, and Defamation: If you are sued for making false statements that harm someone's reputation, umbrella insurance can cover legal defence costs and potential settlements.
• Lawsuits and Legal Fees: Umbrella insurance can help cover the costs of legal defense and settlements if you are sued for several reasons, including personal injury or property damage claims.
• Landlord Liability: If you own rental properties, umbrella insurance protects you from liability claims related to injuries or damages suffered by tenants or guests.

It's important to understand that umbrella insurance covers many risks, giving you added protection for several liabilities. However, reviewing the terms and exclusions of your policy is recommended to ensure you have a clear understanding of the extensive coverage it offers.

Contact Us Today to Secure Your Financial Future with Umbrella Insurance!

When it comes to protecting your assets and securing your financial future, having the right insurance coverage is essential. Scavone Insurance is a trusted provider of umbrella insurance and can guide you through the process of obtaining the right policy for your needs. Contact us at Scavone Insurance today to learn more about how umbrella insurance can provide you with enhanced protection. You can also call us at (914) 428-7111.