How Does It Work?

This policy may also protect against certain situations not coverable under other policies. Things such as arrest, slander, or rental property liability are not generally covered under traditional policies. An umbrella policy can also provide insurance coverage for injuries, damages to property, some lawsuits, or cases of personal liability.

Types Of Coverage

Bodily injury coverage is important because it covers medical costs. This would help in the event of a major auto accident, a pet attack, or visitors falling or otherwise suffering an injury in your home or on your property.

This coverage also safeguards against property damage and the loss of someone else’s property. This can include someone else’s vehicle, items in a home, or public property damaged accidentally by you or a family member.

If you’re a landlord, then you also can benefit from umbrella coverage. Landlords can be liable for injury or damage that occurs on their property. If they’re sued, then umbrella coverage can help if the landlord has to pay damages.

This policy can also help in the event of false arrest, slander, and libel, mental anguish and torment, or wrongful prosecution. It will help pay for expenses should the policyholder decide to file a lawsuit.

In short, an umbrella policy is an additional protection. It’s a safety net for when your existing liability coverage isn’t enough to cover your expenses.