A standard insurance may not be enough to protect you and your family against any devastating unexpected liability claims. A Personal Umbrella Insurance policy provides coverage of any liability over and above the standard homeowner insurance or auto insurance. In short, an umbrella policy activates itself from where the limit has been reached in the other liability.
How does it protect?
It
is optional to purchase a personal umbrella insurance policy, but they ensure
extra protection. An example where you should take an additional coverage policy.
If there is an accident in which your car is involved and another driver gets
injured. In that case, the auto policy liability coverage pays up to the limit
of the insured policy. But the other driver may likely suffer a loss of income
for a certain period. It claims a certain amount from you as damages over the
limit of Personal
Insurance.
Here the personal umbrella policy can cover the shortfall in the coverage.
·
Your driver accidentally hits a pedestrian
·
An accident by swing causes serious injury
·
Your burning leaves cause fire and
accidentally damage the home of a neighbor
·
You crash your boat accidentally into another
one
· You are sued when your dog bites someone
What is covered under Personal Insurance Policy?
Personal umbrella insurance policies typically cover a wide range of losses, including damages where one is obligated to compensate because of
1. Personal Injury – Defamation of another
person's character, false arrest, privacy invasion, slander, and libel.
2. Bodily Injury – Medical expenses and
loss of income of other people involved in an accident.
3. Property Damage – Damage and destruction of another property, including loss of revenue from its use
Conclusion
A
Personal Umbrella Insurance Policy covers the insured and all other persons mentioned
in the policy declaration. However, it does not cover certain occurrences such as
intentional criminal acts, damages or liabilities related to the business or
personal belongings, etc.
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