At Hashimi Insurance Agency Inc., we usually get these questions from our California clients, "Do I really need umbrella insurance? Is umbrella insurance not for the wealthy?" You probably are under the same dilemma, but thankfully, we are here to set the record straight.
Why you need umbrella insurance
Liability coverage protects you and your family when you cause bodily harm or property damage to a third party. For instance, when reversing your car, you might crash into your neighbor's wall, but your auto insurance liability coverage pays for damages. Or perhaps your dog might bite someone. Instead of paying for medical expenses and legal costs from your pocket, your homeowner's insurance may save the day.
Unfortunately, your liability coverage stretches as far as your policy limit. In case of significant liability damages, your typical liability insurance may run out, putting your assets on the line. When you need higher liability coverage, umbrella insurance can be your best friend.
What does umbrella insurance cover?
Umbrella insurance provides you with extra protection when your typical insurance runs out. Whether it's a boat, home, auto, or commercial insurance, umbrella insurance protects you against the following:
- Property damage: Pays for property damage caused to a third party.
- Bodily injury: Covers for medical expenses of injuries inflicted to another person. Also, it pays for legal costs if the person goes ahead and sues you.
- Personal liability situations: Covers you if sued for slander, libel, malicious prosecution, or false arrest /detention.
You probably think that your typical auto, boat, or home insurance covers the above. While that is true, umbrella insurance takes over when your current insurance coverages run out.
What does umbrella insurance not cover?
Well, umbrella insurance might be the mother of all liability coverages, but it has exclusions, too. Umbrella insurance won't cover you in the following instances:
- Injuries to yourself or damage to your property
- Intentional criminal acts
- Business losses
- Legal suits when you breach a contract
If you are a resident of California, it's time you purchased umbrella insurance from Hashimi Insurance Agency Inc. We will walk you through the ins and outs of umbrella insurance and help you choose the right coverage. Contact or visit our offices today.