Umbrella insurance is known for providing valuable protection that helps people safeguard their assets. It ensures residents in Florence, AL do not have to liquidate their savings or go into debt after a major liability claim. However, umbrella insurance does not cover every situation. Understanding your coverage helps you avoid unexpected bills or denied claims.
Liability Coverage
Umbrella insurance functions as extra liability protection. It applies when the liability limits on your primary policies, such as homeowners or auto insurance, are exhausted. For example, if someone is injured on your property and their medical expenses exceed your homeowners’ liability limits, umbrella insurance can help pay the remaining settlement or judgment.
Just like other liability policies, umbrella insurance does not cover your own medical bills or property damage. For those expenses, you must rely on your health insurance, homeowners’ policy, or auto insurance. An agent at McBride Benefit Solutions can explain how your policies work together.
What Else Is Covered?
Umbrella insurance can also help cover legal defense costs, attorney fees, and settlement amounts in covered liability lawsuits. However, every umbrella policy includes coverage limits. If a judgment totals 1.5 million dollars and your umbrella policy covers only 1 million dollars, you would be responsible for the remaining 500,000 dollars.
Most umbrella policies also exclude intentional or malicious acts. For example, if you intentionally harm someone on your property, the policy will likely deny the claim.
Experienced representatives at McBride Benefit Solutions can help you understand your coverage, including policy exclusions and limitations. Contact us today to learn more. We proudly serve the Florence, AL area.
