What does an umbrella do for you? Protect you from the harshest of weather and provide you protection when all else fails; in times of need. Umbrella insurance works just like an umbrella. It provides you security and comfort when you need it the most. Moreover, it is secondary insurance that covers your primary insurance plans but is equally important. In more specified terms, umbrella insurance is a specified type of insurance designed to add extra liability coverage over your primary insurance policy such as auto insurance and home insurance.
Why do you need umbrella insurance?
Yes. Why? Simply because life is unpredictable. In an era plagued by legal loopholes and social constructivists’ ideals, you never know when someone can sue you and snatch your livelihood away from you in seconds. Plus, there is only so much that your primary insurance can cover. Umbrella insurance is for anyone who is at risk of incurring liabilities.
Umbrella insurance also extends to the rest of your family as well. Take auto insurance as an example; your auto insurance is registered in your name and doesn’t extend to your family. Suppose that in an unforeseen circumstance, a member of your family is involved in an accident. If you have umbrella insurance, you won’t have to pay out of your own pocket for it. The expenses, damages, and legal dues will be covered by umbrella insurance.
What does Umbrella Insurance Cover?
Umbrella insurance covers protection against the potential financial fallout of certain types of unforeseen events that lead to property damage or injury, for which the policyholder is held responsible. Typically, umbrella insurance will cover bodily injury, personal injury, property damage, and landlord liability.
Consequently, umbrella insurance doesn’t cover everything. It doesn’t cover your business losses, criminal actions, contracts, and your personal property.
Here are some claims which were covered by Umbrella insurance
There are tons of scenarios in which umbrella insurance can help you save major finances. For instance;
Your son takes out a vehicle insured under you out on a drive with his friends. In a drastic turn of events, the car left the road and struck a tree. Your son remembers the events differently and recollects that another car cut him off; however, there were no witnesses at the scene. In the meanwhile, one of his friends got severely injured in the process, the claimant. Your umbrella insurance will cover the amenities sued on you through these claims.
Consider another scenario;
The claimant was on the insured’s property, looking after their horses. One of the horses kicks him down, and he suffers major injuries, including skull damage. The claimant isn’t of legal age and was given a 5% chance of survival. He survives and is now undergoing rehabilitation. The insured’s umbrella insurance will pay the sum of money involved in the process.
Umbrella insurance is secondary and covers your other insurances, it is true, however, without it, you are left unsecured and vulnerable in a broad context. Why do you get insurance in the first place? To minimize financial losses and cover liabilities. Accidents can happen anywhere and anytime, so they can claims. At Paradiso Insurance we realize the extensive, broad categorization of umbrella insurance and its coverages and urge our clients to pursue it in order to get maximal security through their insurance programs.