Homeowners insurance safeguards you in the event of, say, a tragic fire that burns your entire home. While that’s a nice start, you also have to think about safeguarding your home against potential lawsuits. For instance, you could face a lawsuit if a guest slips and falls in your tub. If you lose the case, you could also lose some or all of your assets, and yes, even your house. Enter umbrella insurance.
What exactly is umbrella insurance?
In general, umbrella insurance will only take effect once you’ve reached the liability limit on your homeowner’s insurance. The United States Adjusters and other public insurance adjusters in Florida explain its main purpose is to protect your house should an individual sue you because of an untoward incident that occurred on your property. Commonly, an umbrella policy will cover the following:
- Personal liability for incidents that occurred on your property such as your beloved pooch biting your neighbor;
- Property damage or personal injury due to your or a family member’s actions, or due to property hazards like trampolines and pools;
- Protection against false arrest, libel, slander, and wrongful eviction;
- Additional protection for your motor vehicles, which you could use with your standard auto insurance; and
- Reimbursement for legal fees in case you get sued.
Considerations for umbrella insurance
Before looking around for umbrella insurance coverage, you have to determine your existing insurance policies. Majority of homeowners insurance have some liability protection that’s commonly capped between $100,000 and $300,000, and this might be enough if you don’t have significant assets and own a modest home. On the other hand, some homeowners might need more coverage.
Overall, do your due diligence, look at other provider’s offers other than your current provider, and consult a professional to make sure that you’ve got all the coverage you might need.