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Umbrella insurance provides additional protection to help keep your assets safe. It’s well-known for helping pay legal expenses, but it doesn’t always cover lawsuit settlements. You need to be aware of many clauses instead of assuming umbrella insurance will take care of it.
Homeowners’ Liability Lawsuits
People injured on your property can often sue, even if it’s something as seemingly minor as a trampoline accident, where the person knew the risk. Typically, homeowners’ insurance will cover most of the settlement. Umbrella insurance is designed to kick in and cover damages that exceed homeowners’ liability limits. Ask an agent at Senz Insurance Agency Inc. when umbrella insurance will kick in during these lawsuits.
Auto Accident Lawsuits
Umbrella insurance works similarly in auto accidents in Beloit, WI. It doesn’t automatically cover every penny of a settlement. Instead, it kicks in to cover the amount that exceeds your current coverage limits. For example, if a person’s medical bills from the accident are greater than the bodily injury limit in your policy, umbrella insurance can help pay the difference.
Defamation Lawsuits
Umbrella insurance is known for helping people who are being sued for defamation. It can often help cover the expenses of a legal team. In most cases, it can cover the cost of a settlement, provided it falls within coverage limits.
However, there are certain exclusions. Most umbrella insurance policies don’t provide coverage for malicious acts. For example, if you slander someone else’s name intending to ruin their reputation, you’re usually on your own when paying the settlement.
Umbrella insurance protects your assets if other insurance doesn’t provide enough coverage. You should always work with an experienced company like Senz Insurance Agency Inc. to ensure you understand how your policy works. Contact us today to learn more. We’re currently serving the Beloit, WI area.
