The Most Common Questions Surrounding Umbrella Insurance

Did you know that road traffic injury is the leading cause of death for young adults and children between 5 and 29 years old? Unfortunately, whether you get into an accident at your home, in your car, or at another location, a general insurance policy may not pay for everything.

You feel overwhelmed because you have bills to pay and aren’t sure where to turn. The good news is that having umbrella insurance can help you avoid this problem in the future. 

You might be left wondering what umbrella insurance is, or perhaps you have some questions about it that need answering before you sign on. If you are one of those people, we have created this guide on the most common questions surrounding umbrella insurance for you.

What is Umbrella Insurance?

If you pay for boat, homeowners, car, or any another form of insurance, you pay for some form of liability coverage. Liability coverage protects you in the event you are potentially found liable for an event or accident and need legal defense. Legal fees are becoming more and more expensive and the value of the case often surpasses the liability limit of your insurance.

An umbrella insurance policy will help you pay the rest of what you owe.

While umbrella and premises liability insurance are similar, they’re not the same. Umbrella insurance provides additional coverage for things like legal fees and damages and false written statements or slander above and beyond all of your underlying policies. premises liability insurance is more specific to risks at a named location.

What Does Umbrella Insurance Cover?

You and the members of your home will be protected against lawsuits, including damage to others’ property, personal injury, and false imprisonment.

Umbrella insurance coverages will vary from one policy to another. Therefore, it’s best to speak to your insurance agent first, so you understand precisely what’s covered. 

Excess liability could also help out with landlord liability. For example, it would help if a tenant rented your property and claimed that they were injured due to your negligence.

If you file a lawsuit, the opposing party can countersue. Umbrella insurance could protect your liability. 

If someone is seriously injured in a home or vehicle accident, your policy might not cover everything. Umbrella insurance could pay for that person’s medical costs. 

Who Needs Umbrella Insurance?

While it’s typically clear whether you need one type of insurance policy or another, almost everyone can benefit from umbrella insurance. This is because you’re protecting your liability when setting up this type of policy.

About 53% of small businesses are involved in at least one lawsuit in their history. Think about what you could lose if you become a number in that statistic. Commercial Umbrella Insurance could be the difference between your business succeeding or failing.

How Much Umbrella Insurance Do I Need? 

This will depend on the value of your assets. You need to include the valuation of your investments, vehicles, home, and savings.

Speak with your Insurance Agent about the coverage limit for your current policy. As you study umbrella insurance quotes, see how much they’ll protect you above your coverage limits. If the total value of your assets is higher than your current insurance policies, then umbrella insurance is a good idea for you.

Next, think about your personal level of risk. This comes down to your lifestyle and occupation. Consider any parts of your lifestyle that could endanger others. 

Should Renters Buy Umbrella Insurance?

Umbrella insurance could benefit you whether you live in a rented condo, apartment, or stand-alone home. First, look into your current renter’s insurance and see what your underlying liability limit is.

Some renter’s insurance policies combine liability and property insurance, while others don’t. The personal liability section is considered the underlying coverage for umbrella policies.

What Isn’t Covered?

Check with your Insurance Agent to see what won’t be covered.

Umbrella insurance might not offer coverage for injuries sustained during a dog attack if you own certain dog breeds. You may not receive coverage for pre-existing criminal charges or lawsuits. Those working in certain professions won’t receive coverage.

Personal injury due to a false statement is unlikely to be covered. If there’s property damage expected by the insured or a bodily injury resulting from pre-existing conditions, you might not receive coverage.

Do Businesses Need Umbrella Insurance?

All businesses should consider umbrella insurance. If your business heads to court and loses, you could be responsible for a large settlement.

Your insurance will only cover a certain amount of the settlement. Umbrella insurance could pay the rest. 

Umbrella insurance could help your business stay afloat and avoid becoming bankrupt. See what fits into your budget by speaking with an Insurance Agent. 

Is Umbrella Insurance Worth It?

Yes! It’s a cost-effective way to protect your assets and family.

Speak with an Insurance Agent about customization options for you and your family. Keep in mind that it protects you when another person or their property is injured.

Is Umbrella Insurance Expensive?

Not necessarily! It’s a common misconception that only the rich can afford Umbrella Insurance. The cost of an umbrella policy could come out to as little as $1 (or less) a day.

There’s a wide range of umbrella insurance quotes available. Your agent will help you create a customized plan that combines your current insurance plans and covers what you need.

Lawsuits occur for everything from dog bites to car accidents, and it’s essential to keep your family safe. You also need to protect your finances from lawsuits since court costs can quickly escalate into hundreds of thousands of dollars.

Understanding More About Umbrella Insurance

Whether you own a business or not, umbrella insurance can help to fill in any gaps or limitations in your insurance policies. From car to homeowners insurance, it covers an almost endless variety of areas.

Are you keen to get started with umbrella insurance in Florida? Contact us today, and we’ll find a plan that best suits your needs. We’re ready and waiting to answer any questions you have before, during, and after purchasing.