How does umbrella insurance work?
Should an accident happen at your home and you are sued, the personal liability part of your homeowner's insurance will also help pay for your legal defense in the event that you are sued. Homeowner's liability will help pay for a guest's medical bills, including transport to the hospital, medical and dental expenses or funeral expenses.
Many homeowner policies come with $100,000 of personal liability. Some homeowners up their coverage to $300,000, but that could be quickly gone with a serious injury or death.
An umbrella policy takes over once the limit has been reached on the personal liability of your homeowners or auto insurance. Umbrella insurance will cover you if you are sued by a neighbor for libel and slander. An umbrella policy would also protect you if you hosted a Christmas party or cookout, and the guests developed food poisoning.
Bazemore-Abner Insurance Group recommends adding umbrella insurance to your existing insurance coverage. Umbrella insurance is liability insurance that provides coverage above the limits of your homeowners and auto insurance liability.
Why do I need umbrella insurance?
Umbrella insurance will protect your assets (whether modest or extensive) if the unthinkable happens. You won't have to worry about "what if" when you have umbrella insurance in addition to your homeowners and auto insurance policies.
Umbrella liability pays for liability claims that are above the liability limits of your homeowner or auto insurance. Most homeowners' policies include liability, but usually, those limits aren't sufficient to cover a serious accident that occurs at your home or an auto accident that results in severe injuries or death.
In simple language, umbrella insurance protects your savings and investments if you are sued and found liable for an accident.
Umbrella Insurance Ensures Peace of Mind
Ask the insurance professionals at Bazemore-Abner Insurance Group for a review of your homeowners and auto insurance. For peace of mind, buy the maximum amount of liability coverage on both your homeowners and auto. Add an umbrella policy - it's more affordable than you think. $1 million umbrella policy averages from $150 - $300 annually.