If you have home insurance, you are likely well aware that there are limits to certain types of coverage. One of those areas that you may be lacking is liability coverage. Thankfully, you can get an umbrella policy to provide you with additional coverage. Here is what will and won't be covered by an umbrella policy.
What Is Covered
An umbrella policy is designed to give you additional liability coverage, which is primarily for injuries that happen in your home or on your property. Since a trip to the emergency room can be quite expensive, you'll be able to get coverage that will help pay for the injured person's medical bills. If you are sued for the damages that they have suffered, an umbrella policy can also help cover the legal charges related to being taken to court.
What Isn't Covered
It's important to know what isn't covered under an umbrella policy. If someone was intentionally injured by you on your property, it will likely not be covered under your umbrella policy. Any damage caused intentionally or by a criminal act won't be covered, leaving you to pay for the mistake.
An umbrella policy will not extend coverage to items that have limits in your normal home insurance policy. You would need a different type of policy to cover losses from a home business or for personal belongings like furs or artwork.
Why Get An Umbrella Policy
There is usually some sort of circumstance that brings up the need for an umbrella policy. For example, you may have a trampoline in your backyard and are worried about a neighborhood kid getting injured on it while playing. The same can be said for swimming pool owners that have guests use the pool from time to time.
If you do run a business out of your home, you may have concerns about an unexpected slip and fall on your property during the icy winter months. People that have a dog that is not on a leash in their backyard may be worried about a potential dog bite that can leave another person injured.
It can be difficult to fully understand what an umbrella policy offers without fully understanding what your needs are. Work with a local homeowners insurance agent in your area for assistance. They can look at your specific situation and determine how an umbrella policy can protect you and your family from an unforeseen financial responsibility