Why get extra insurance when you already have your assets protected? This is a question numerous Phoenix, AZ residents struggle with, along with the dilemma of what umbrella insurance covers. Insurancewide Company LLC puts into perspective what this policy is all about and whether you need it.
Defining Umbrella Insurance
Umbrella insurance is a policy that acts as a secondary layer of protection once the liability limit on underlying insurances, such as auto and home insurance, is exhausted. This means that extra expenses related to another person’s injuries, lawsuit claims, and property damage are taken care of under umbrella insurance.
Along with this, an umbrella policy also provides coverage to any family members included in your insurance. If, for instance, your children or spouse cause damage to multiple properties while driving, umbrella insurance covers costs exceeding your auto insurance limit.
Situations Requiring Umbrella Insurance
Typically, some lifestyle factors tend to increase your likelihood of needing umbrella insurance more than other everyday activities. These include:
• Ownership of pets
• If you own or rent out a property
• If you have a vehicle or watercraft, both owned and rented
• Host family and friends to your premises occasionally
• If you are a business owner and employ staff
If you check any of the above boxes, then you need an umbrella insurance policy. The above factors are gateways into dog bite lawsuits, wrongful eviction and entry claims, bodily injury claims, and defamation of character trials.
When Does Umbrella Insurance Come In
The first instance where umbrella insurance comes in handy in Phoenix, AZ is when your underlying coverage limits can no longer cover expenses related to damage or liability claims. Rather than let your assets or income pay for the damages in question, umbrella insurance caters to the costs of compensation. If, however, you win your case, your lawyer’s fees are covered by umbrella insurance.
The second instance where umbrella insurance provides relief is when you suffer lawsuit claims not covered in your policy. These include claims related to libel, slander, and false arrest. Additionally, property not insured, such as rental units or boats, will also fall in this category.
While umbrella insurance may seem like an afterthought, it is the secret to keeping your assets secure in unexpected emergencies. Talk to Insurancewide Company LLC to get started on your umbrella insurance journey.