Umbrella Insurance Policies

Tunnell Insurance

Umbrella insurance is additional liability insurance that is designed to protect policy holders from major claims and lawsuits brought over injuries and property damage, thus protecting your assets and your future. These policies accomplish protection in two ways. First, they give policyholders additional coverages beyond the limits of typical home, automobile, commercial business and other policies. Secondly, umbrella policies provide coverage for claims that other liability policies may not cover, including false arrest, libel, slander, and liability coverage for events that may happen at rental units that you own.

Whether or not to buy umbrella insurance depends on how much risk or exposure you have in your life and your total net worth. If you have items on your property such as pools, trampolines or other recreational features that have the potential to cause injury, obtaining an umbrella policy is a good idea. Umbrella policies are also a good idea for wealthy individuals who are well known in their communities or are concerned about losing their assets in a large lawsuit.

Here is how these policies work. Let's say that you are at fault in an automobile accident and a lawsuit is filed for $1 million in damages for bodily injury. If the bodily injury limit on your auto policy is $300,000, you would still be liable for the additional $700,000. An umbrella policy would cover that amount and more, depending on the limit you set for the policy.

In addition to providing for high claims on bodily injury and property damage, umbrella coverage policies can protect against a number of different situations that many other policies exclude such as shock and mental anguish, false imprisonment, malicious prosecution and a number of other personal liability situations.

Umbrella policies have three major benefits. First, the high coverage amounts of $1 million and more protects you from losing everything in a lawsuit. It also provides coverage for defense costs in lawsuits, which can easily amount to over $100,000. Finally, it provides liability coverage for lawsuits not covered by other types of insurance you may have.

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