An umbrella policy is extra liability insurance. An umbrella policy will help protect you when you reach the limit on the underlying liability coverage of your automotive and homeowners insurance. This means it provides additional bodily injury and property damage liability coverage in the case that you are at fault. You can also elect to purchase an umbrella policy that provides additional monetary protection to you in the event you were hit by an uninsured or underinsured driver.
What it covers
In addition to providing extra bodily injury and property damage coverage, umbrella policies can provide protection for claims not covered by other liability policies. For example, an umbrella policy may help protect you against liability that you may face as a landlord or owner of a rental unit. It can also help protect you in the event that you are sued after a car accident, or if you are sued for claims such as slander, libel, false imprisonment, malicious prosecution, shock or mental anguish, and other personal liability claims. An umbrella policy is important if you want to protect personal assets that you may own.
In addition, you may want to purchase an umbrella policy that provides umbrella coverage to you in the event you are hurt by an uninsured or underinsured motorist. If you purchased umbrella coverage for uninsured/underinsured coverage this means that if you are hit by a driver who is not carrying sufficient insurance to cover your injuries, you can access your own insurance to help take care of you when you need it most. Imagine if you lost your job or were off of work because you were severely hurt in a crash – this type of coverage would be important in protecting you in these situations. You certainly do not want to reject uninsured/underinsured motorist coverage without careful consideration because it is relatively inexpensive compared to the benefit you may be able to access in the event you are injured.
You will want to discuss with your insurance agent in detail the types of coverage available through an umbrella policy.
What it doesn’t cover
An umbrella policy will generally not cover damage that you cause if you commit a crime and are required to pay restitution.
Umbrella policies are a secondary form of insurance so they also have underlying policy requirements, meaning you must have a certain amount of auto and/or homeowners insurance in order to qualify. However, umbrella policies may be a good idea options for those with assets they would like to protect, especially in the event of a lawsuit or to protect yourself in the event you are harmed by other drivers not carrying sufficient insurance.
If you have been injured in a traffic accident, the attorneys at Langer & Langer are here to help. They have handled personal injury cases across the state of Indiana and have extensive experience in personal injury claims. Please feel free to contact us if you have any further questions.