What is an Umbrella Insurance?

Umbrella insurance is a type of policy that extends liability protection beyond what your primary policies, such as homeowners, renters, or auto, provide. Umbrella insurance is designed to safeguard you against major claims and lawsuits that may exceed the limits of your primary policies. Umbrella coverage can cover a range of incidents, such as bodily injury, property damage, and personal liability. Umbrella insurance provides coverage for incidents not typically covered by primary policies, like defamation, libel, or slander.

An umbrella policy typically comes in increments of $1 million and is reasonably priced compared to the amount of protection it provides. Individuals with assets like homes, retirement savings, or investments should consider purchasing umbrella coverage as it will help safeguard those possessions in case of a major claim or lawsuit.

What is the Role of Umbrella Insurance in Personal Injury Cases?

Personal injury law refers to umbrella insurance policies as supplemental coverage that extends beyond the limits of an insured’s primary liability policies, such as homeowners or automobile coverage.

Umbrella insurance is designed to safeguard individuals against large, unexpected claims that may exceed the limits of their existing coverage. For instance, if someone gets in a car accident and the damages exceed what their auto policy will cover, an umbrella policy would cover any remaining costs up to its policy limit. Umbrella insurance can offer protection for a variety of liability claims, such as bodily injury claims, property damage claims, and personal injury suits such as slander or defamation.

Generally speaking, umbrella policies have higher policy limits which may cover claims not otherwise included in your primary policy. An umbrella insurance policy can be invaluable in personal injury cases, providing additional liability protection beyond what standard policies such as homeowners, auto, or renters provide.

If someone is found responsible for damages in a personal injury case, the amount awarded can often exceed what their standard insurance policies will cover. In such cases, they may have to personally cover any remaining costs out of pocket.

However, with an umbrella insurance policy, a person can obtain additional liability protection that kicks in once their standard policies have been exhausted. This helps safeguard personal assets such as savings, investments, and property from being seized to satisfy judgments in personal injury cases.

Furthermore, an umbrella insurance policy can offer coverage for specific claims not covered by standard policies, such as those for libel, slander, and defamation.

In conclusion, umbrella insurance policies can be an invaluable asset in personal injury cases as they offer additional liability protection beyond what standard policies offer and help safeguard a policyholder’s personal assets.

If you or a loved one has been injured in an accident due to the fault of someone else or negligence, Darfoor Law Firm is here to help you and guide you with the best course of action.
Accidents can be tough to deal with, and you need someone who understands, sympathizes with, and fights for you.
Call us at +1-833-DARFOOR for a free consultation and case evaluation