Are you concerned that your homeowner's insurance doesn't provide enough coverage? If so, you have an option that will ensure you are fully covered in the event that trouble strikes. Umbrella insurance is a policy that insures above and beyond your current homeowner's coverage. The following guide can help you better understand how these policies work:
What is it?
Umbrella insurance for homeowners is simply a liability policy. It is an option for those that have already raised their regular liability policy on their home to the maximum amount allowed. These policies are specifically for excessive liability – they do not cover property over its stated value. In other words, your umbrella policy protects you from being sued out of your own pockets if someone puts forth an injury or property damage claim against you that exceeds your normal insurance coverage.
Are there any extras?
Often, an umbrella policy will cover things that your homeowner's policy normally wouldn't. For example, the coverage may cover some legal fees in the event of court proceedings, as well as reimburse lost money from a false arrest or cover you in the event you are accused of libel or slander. The list of things an umbrella policy covers varies between policies, so it is important to look these over with an agent.
When can you use it?
Generally, your umbrella policy provides no coverage until after your homeowner's insurance has been maxed out on the claim. Then, the umbrella policy kicks in to make up the difference. The only exception is when it is a claim that is not covered by your regular insurance but it covered by the umbrella policy, such as those listed in the above section.
Does it keep you out of court?
Often, yes, with the exception of if a criminal trial is required. Since you have sufficient coverage to pay for any claim, most times you personally will not be called into any court proceedings. Sometimes your insurance company may refute the claim on your behalf, but in this case, the insurance company will represent you in court. All you may need to do is fill out paperwork prior. This isn't a guarantee that you won't be called in, but there is less chance that this will happen if you have sufficient insurance.
For more help or to begin shopping for a new policy, contact an insurance agency in your area.
Share13 September 2017
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