5 Things You May Not Know About Umbrella Insurance
When it comes to protecting the things that matter most, umbrella insurance is extra liability coverage that goes above and beyond the limits of your other insurance policies. Your umbrella policy may also cover some situations that aren’t covered by your primary policies. The term umbrella is used to reference this broad reaching coverage.
While most people have heard about umbrella insurance, not everyone understands how it works. We’ve uncovered five facts about umbrella insurance that may surprise you.
Provides worldwide coverage. If you’re planning on traveling abroad, an umbrella policy is a great travel companion. If you’re involved in an incident abroad or want some extra protection on the road, your umbrella policy gives you that added security.
Personal injury coverage. One great way umbrella insurance protects you in the modern world is by adding coverage for libel, slander and defamation of character. These areas may not be included in your underlying policy.
Protects assets and future earnings. You’ve saved hard for those things that matter in your life, today and in the future — an umbrella plan is designed to help protect your goals. Imagine if you accidentally hit a bicyclist and are found liable. If the damages are $1 million and your auto insurance covers up to $250,000, then your umbrella will step in and cover the remaining $750,000, leaving your savings and future earnings intact.
Extra protection over vehicles. Most people think of an umbrella policy as an extra layer of protection added to their home and auto insurance policies, but it actually extends further. If you enjoy recreational vehicles, you’ll be happy to discover that an umbrella policy can also extend over your boat, motorcycle, snowmobile, ATV/UTV, etc. Check with your agent to make sure your recreational vehicles are covered.
Legal defense costs. If you are sued, your umbrella insurance will cover your defense costs in most cases, regardless of fault. Any legal defense costs provided are in addition to the limits of liability for your policy.