Umbrella insurance may help protect the assets people work their entire lives to amass in the event of civil lawsuits. People in Indiana work hard to secure their financial stability and futures. In an instant, however, accidents can occur that put them at risk for legal action. When the court finds people liable, they are responsible for paying for the victim’s damages and losses. Depending on the severity of the incident, this could wipe out all their assets and savings, putting them in an uncertain position where they must start again.
What is Umbrella Insurance?
Umbrella insurance is extra liability coverage that people can purchase. Such policies protect people from personal financial responsibility for claims that exceed the coverage of their other insurance policies, including home and auto. For example, the state minimum coverages for bodily injury to uninsured motorists is $25,000 per person injured and an accident total of $50,000. Should the damages suffered in injury accidents exceed people’s coverage limits, umbrella policies may cover the difference. Umbrella insurance also protects people from liability in claims that are not covered by their other insurance policies.
What do Umbrella Policies Cover?
Umbrella insurance covers an array of liabilities, including those arising from bodily injury, property damage, legal fees, and some other legal damages. Umbrella insurance may pay out on behalf of policyholders for judgments and settlements in cases involving issues such as auto accidents, dog bites, and pool accidents. It is important to keep in mind that these policies do not apply to malpractice claims, damage intentionally caused to another person or property, workers’ compensation claims in Indiana, or damage caused by companies or business-related activities.
Who Needs an Umbrella Policy?
Anyone with assets to protect may benefit from having an umbrella policy, in particular, if they are involved in certain activities or are otherwise prone to lawsuits. Property owners and those with significant assets, savings, or other valuable holdings should consider obtaining umbrella insurance. People who have aggressive dogs and those who own swimming pools, trampolines, or other dangerous attractions that could cause injuries may find it helpful to purchase this type of coverage to protect themselves from personal injury claims. Umbrella coverage is also a good idea for those who frequently travel outside the U.S. and are concerned about liability claims against them while abroad.