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What Is Umbrella Insurance?
Umbrella Insurance also known as Access Liability Insurance is a
form of insurance that will supplement your basic liability policies,
such as your auto, home or renters insurance. An umbrella liability policy
covers a much higher limit and goes above and beyond claims directly relating
to your home and auto.
The main purpose of your umbrella policy is to protect your assets from an
unforeseen event, such as a tragic accident in which you are held responsible
for damages or bodily injuries. If another party files a lawsuit against you,
your umbrella coverage will pay for the damages you're legally responsible for
up to the policy limit
What Does Umbrella Insurance Cover?
An umbrella policy provides additional coverage or “excess liability” above
the limits of your basic policies. It can protect you from bodily injury
liability claims and property damage liability claims. Umbrella policies
also provide a broader form of coverage and can help cover legal fees,
false arrest, libel, and slander.
How Does Umbrella Insurance Work?
Your Umbrella Insurance can come into play if you are found liable and
need to pay damages, or if you are sued and need to pay for your legal
defense even if the result is that you are not found to be responsible.
An umbrella policy only pays once your basic liability limits have been
exhausted or the claim is excluded from the basic liability coverage.
The claim will be made against you, the policyholder, on behalf of the
wronged party. Then your insurance company may pay the settlement amount
up to the limits of your coverage. If the settlement amount exceeds your
coverage limits, you are responsible for paying the remaining amount out
of pocket.
Most all of our personal lines carriers offer an umbrella package designed
to help protect your hard earned assets. Ask your Kaufmann Insurance agent
to help you choose the right amount of umbrella coverage that fits your needs.
