Front of houseIn today's litigious society, it can be difficult to determine the right amount of liability protection you should include in your homeowners insurance policy. Your coverage must be enough to protect your assets in the event you are sued by someone who is injured on your property. 

What Is Umbrella Liability?

Umbrella liability is extra liability insurance, over and above the maximum limits stated in your homeowners policy. It is designed to protect your assets from major claims or lawsuits. The umbrella policy kicks in when the amount of liability in your home policy is exhausted. To be eligible for umbrella insurance, you are required to carry certain limits of coverage in your homeowners policy.

What Does Umbrella Insurance Cover?

To better understand insurance, you must focus more on what isn't covered than what is. If something isn't specifically excluded in your policy, it's covered. Some of the common coverages in an excess liability policy can include:

Bodily Injury Liability: Covers the cost of damages for medical bills or claims made as a result of a visitor being injured on your property. Some examples include a guest falling in your home or a neighbor's child getting injured in your pool.

Property Damage Liability: Covers the cost of damages to another person's property. Some examples may include your dog ripping up a neighbor's priceless Oriental rug or your child causing accidental damage to school property.

Personal Injury: Even though personal injury can take the form of bodily injury, it can include other forms like emotional distress, libel or slander, humiliation or defamation of character.

How Does Umbrella Liability Work?

Let's say a neighbor's child dives into your pool and suffers a broken neck. The total medical expenses amount to $500,000. The parents decide to sue you for $1 million since there was no adult at the pool and there was no "No Diving" sign posted.

Your total liability for this accident is $1.5 million. The maximum liability coverage in your home policy is $300,000, leaving a shortage of $1.2 million. Your umbrella liability policy will pick up here and pay the remainder of these damages, up to the maximum limit you have chosen.

The more your assets and earning power increase, the more you have at risk should you be sued. Your insurance agent can help you decide on the coverage that works best for you.

Protect both your home and your bank account. Call Miller Insurance Agency at (409) 899-9531 for more information on Beaumont home insurance.
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