How it Works
Umbrella insurance is a type of liability insurance that goes outside the scope of other types of insurance policies, like a protective umbrella. It is usually used as supplementary insurance for an existing policy, but it can also be used as a primary insurance policy. The following are examples of different types of damages that this type of policy will usually cover:
The following are examples of different types of damages that this type of policy will usually cover:
Whether you’re a home or business owner, rent a house or own a car, umbrella policies can be absolutely essential if you want to protect your assets and your future because these policies limit the type of lawsuits that can be filed against you. For example, most types of insurance may not cover personal liability issues such as slander, false arrest or libel, whereas you would be protected from all three with an umbrella policy.
Let’s also say you’re a landlord, and the dog of one of your tenants bites another person while on their property. You can be held liable in this situation because you own the house, and some homeowner’s policies may not cover this type of situation. On the other hand, with an Umbrella policy, you will be protected.
As you can see, there are many situations in which having an umbrella policy can be a great benefit to you. This type of policy will protect your assets and safeguard your financial future by providing protection you cannot get with other policies.