Life is unpredictable. That’s why we have insurance in the first place. But what happens if your policy limit isn’t enough to cover a lawsuit? That’s the reason you should consider umbrella liability insurance.
What is umbrella liability insurance?
Umbrella liability insurance comes in handy for situations involving legal action. It offers protection in addition to any primary coverage you may have, such as home, auto, and commercial policies. Typically, it also covers damages, legal fees, and medical bills not paid by your original insurance.
For example, suppose someone trips and falls on a sidewalk during a party at your home. Their medical bills amount to $300,000, but your personal liability insurance only covers $200,000. If you have umbrella liability insurance, the policy will cover the extra sum.
Note, however, that umbrella insurance is not the same as excess liability coverage. Excess liability will only extend your original policy limits. However, umbrella policies often include insurance that primary policies don’t, such as coverage for legal fees and damages in slander or libel lawsuits.
What does umbrella liability insurance cover?
Of course, every policy is different, but umbrella insurance typically offers protection for situations such as:
- Crashing your vehicle and injuring someone.
- Someone getting injured on your property.
- Getting sued for libel or slander.
- Getting sued by a tenant (if you’re a landlord).
- Getting sued for breach of contract (as a business).
How much insurance should you get?
We normally suggest a policy of at least $1 million. But, of course, you can get higher limits if you like.
Who should get umbrella liability insurance?
We recommend umbrella insurance for anyone who owns a home or car, but it’s essential if you:
- Have children.
- Own a trampoline, pool, or other recreational item that increases risks on your property.
- Own a business.
- Own a boat, ATV, or other recreational vehicle.
- Own a pet, especially a dog.
- Host frequent parties in your home.
How do you get umbrella liability insurance?
Getting a policy is simple. Just call your Hibbs agent.
Our agents are happy to answer your questions, provide policy quotes, and help you find the right coverage. We don’t want an unfortunate incident to derail your life.