Umbrella insurance is a personal insurance policy that provides protection over and above the limits of policies such as auto, home, and other personal liability coverage you already have. The umbrella policy can help protect you from claims made against you for bodily injury or property damage resulting from an accident for which you were legally responsible.
Does An Umbrella Insurance Policy Cover Damage To Your Property?
Personal umbrella insurance does not cover damage to the insured’s property. This type of policy is meant to protect from liability claims. In no way does an umbrella policy provide coverage for the replacement or repair of anything that belongs to you, such as a car or personal belongings. You can consider it as your last line of defense if you are found liable for damage to another person’s property or injuries they have sustained.
Suppose you’re looking for insurance that covers damage to your belongings. In that case, you’ll want to look into a renters or homeowners insurance policy as your umbrella insurance will only cover the costs of legal fees and liability limits on other policies.
Umbrella insurance can also help if you’re sued for:
Slander or libel: Slander is spoken defamation, while libel is written or broadcasted defamation. The umbrella policy will help protect your personal assets if you’re sued for communicating false, malicious information about someone.
Malicious prosecution: If you’re found liable for initiating a case against someone, your umbrella policy can help protect you from their legal fees or damages to their property.
False arrest: This is when an individual has been taken into custody without proper cause or evidence. Your umbrella insurance will help cover the costs of any legal action that results from this false arrest.
It is important to know what umbrella insurance covers and doesn’t cover. It is easy to assume that your standard policy will automatically protect you in the cases mentioned above. Contact Southern Risk Associates today for more information or to purchase an umbrella insurance policy in Foley, AL.