What is umbrella insurance? Simply put, this is added liability coverage that kicks in when you have exceeded your underlying liability limits on your auto or homeowners insurance policy. RetireMax Insurance in Orlando, Park IL is here to provide the essential details on umbrella insurance to help you determine whether it’s right for you.
How Does Umbrella Insurance Policy Work?
Imagine a scenario in which you’re involved in an at-fault accident that leaves you liable for far more than your liability insurance covers. Let’s say you’re liable for a whopping $1 million in damages and medical bills, but your insurance stops at a maximum of $500,000.
That’s where umbrella insurance comes in. It covers the other $500,000 so you don’t have to sell your assets or use your precious savings. Umbrella insurance also works for your home insurance, meaning you’re covered in case you’re liable for an amount that exceeds your home insurance liability limits.
What Is Covered By an Umbrella Policy?
Umbrella insurance typically covers:
- Bodily injury
- Property damage
- Defamation claims
- Other lawsuits, such as false arrest
What’s Not Covered By an Umbrella Policy?
Umbrella insurance doesn’t cover:
- Your own injuries
- Damage to your property
- Liability assumed as a business, i.e., while under contract
- Liability as a result of intentional harm
Do I Need Umbrella Insurance?
Umbrella insurance is generally ideal in situations where:
- You own property
- You’re a landlord
- You own recreational vehicles, such as boats
- There’s a high risk of being sued
- You’re a high-net-worth individual
Contact Us Today
There’s more to understand about umbrella insurance, and RetireMax Insurance in Orland Park, IL is here to help. Get in touch with us to learn more about what your policy covers and how much coverage you may need.
