Umbrella insurance also known as personal excess liability covers gives you extra protection against lawsuits and claims made against you that exceed what your normal policy covers.
For example, say you are in an accident and you must pay $500,000 in bodily injuries to the other party but your bodily injury limit only covers $200,000. Where does the other $300,000 you owe come from? Well this in effect is the beauty of having an umbrella insurance policy because it will cover the remaining $300k.
Ok, so what does it cover?
What's covered under umbrella insurance:
- Bodily injury
- Personal injury
- Property damage
- Landlord liability
What typically isn't covered under umbrella:
- Personal belongings
- What's Covered
- Intentional or criminal acts or omissions
- Written or oral contracts
Who should have it?
Generally, anyone who has 1 million or more in net worth should always have an umbrella policy because the minimum amount sold on a policy is $1 million. However, it might make sense for someone who falls below that number to purchase it.
Arnold Insurance Agency can answer any questions about personal umbrella policies, so you can decide whether having additional liability coverage makes sense for you. Give us a call today at 614-863-0455 or toll free at 1800-345-BOND.