Most people have heard of life, auto, or home insurance, but what about umbrella insurance? Despite the name, it isn't coverage for losing or damaging your umbrella. Umbrella insurance at Community Insurance Group LLC is a form of personal liability insurance. Auto and home insurance policies have limits. What happens when the damages incurred are above the limits of those policies? The insurance policyholder has to pay those expenses out-of-pocket. That is unless they have umbrella insurance. Umbrella insurance is an excellent option for Wisconsin people looking for additional protection.
How Does Umbrella Insurance Work?
Let's say you are at fault in a car accident. The car needs over 20k in repairs, and the driver is injured and sues you for their medical bills. The total comes to $500,000, but your car insurance policy only covers $300,000. Without umbrella insurance, you would be on the hook for the remaining amount, which could be detrimental. Umbrella insurance would cover the difference as well as any legal fees accrued.
What Umbrella Insurance Covers
Umbrella insurance covers situations like the above in which a car accident causes bodily injury. It also covers the policyholder and any other household members if someone is injured on their property and decides to sue. This includes a friend tripping down the stairs or your dog attacking the mailman in your front yard. Umbrella insurance can also cover defamation lawsuits, landlord liability, and more. Umbrella insurance does not, however, cover the policyholder's injuries.
Umbrella insurance is a great way to protect yourself from devastating legal costs if you are sued. The experts at Community Insurance Group LLC in Wisconsin are here to help you decide if umbrella insurance is right for you. Please stop by to see us or give us a call to discuss various umbrella insurance coverage options.