When Would You Need Personal Umbrella Insurance?

Posted By: Team Moody,

Umbrella liability insurance is a single policy that covers most aspects of your financial life. So any time you run over the liability limits on one of your other insurance policies, your umbrella policy takes care of the extra costs.

This coverage is a type of liability insurance, meaning that its job is to protect you against lawsuits. It keeps a massive lawsuit from wiping out all your other assets and protects against being sued for damage that other policies don’t cover. Are you interested in this coverage? Moody Insurance Worldwide insurance agents can help you secure your protection. If you’d like more information about this coverage, let’s take a closer look at what it offers and how it can help you.

Personal Umbrella Liability Insurance Coverage 

Personal umbrella liability insurance includes coverage for the following costs:

  • Bodily Injury – If you injure someone in a car accident and the medical bills exceed the limits of your auto insurance or an electrician slips and falls down the stairs while leaving your house, the umbrella policy covers any medical bills beyond the limits of a standard policy. This also aids in instances of injuries that your other insurance doesn’t cover. For instance, if your dog bites someone while you’re out on a walk.
  • Property Damage – If your teenager crashes the family car through a fence and into the side of your neighbor’s house, an umbrella insurance policy can pay for any damage beyond the limits of your auto insurance. The policy also covers damage that isn’t included in auto and homeowners policies. If your pet claws up a priceless painting in a neighbor’s house, your child knocks over an antique crystal vase, or you rent a boat during a vacation and accidentally crash it, an umbrella policy can take care of the damage.
  • Other Legal Damages – An umbrella insurance policy protects you if you’re sued for libel or slander.
  • Legal Fees – It covers legal fees and court costs in a lawsuit. The cost of a major lawsuit could force you into settling out of court, even if you’re not at fault. With an umbrella policy, you can afford a good lawyer to protect your assets.

Life Factors 

You might also be wondering, “When would I need umbrella liability insurance?” There are certain life events or lifestyle factors that could make this coverage particularly important for you.

  • A Dangerous Job – People in some lines of work are more likely to be in accidents that cause harm to others. For example, if your job involves a lot of driving, you have a greater risk of being involved in a car accident.
  • Adventurous Hobbies – If you have a boat, a motorcycle, or any other kind of specialty vehicle, that increases the number of ways you could get into an accident.
  • Pets – Pets can have you responsible for both injuries and property damage.
  • Driving Record – If you’ve been involved in an accident within the past five years, you’re likely to pay a premium as a result. Also, if any driver in your household is under the age of 25 that increases your risk.
  • Previous Lawsuits – If you’ve ever been involved in any kind of lawsuit – civil or criminal – that suggests that you are a person who’s at risk for being sued.

By contacting an insurance agent, you can begin guaranteeing your assets won’t be soaked by an unexpected lawsuit. 

About Moody Insurance Worldwide

Moody Insurance Worldwide, a division of Moody & Associates that was founded in 1914, is a leading provider of risk management programs and insurance coverage to individuals and businesses across the East Coast. We write all sizes of businesses, with technical expertise in many key industry areas, and provide personal insurance programs for estates and high net worth individuals. Our licensed, experienced commercial account managers can work with you to determine the coverage that you need at a competitive rate. Contact us today at (855) 868-0170 to learn more about what we can do for you.