Umbrella insurance, also known as additional liability insurance, provides extra coverage for your liability policy. This coverage can help protect your assets if your current liability coverage isn’t enough to pay for damages.
Coverage for Lawsuits
Yes, umbrella insurance through The Ryan Insurance Agency can cover lawsuits. That’s the primary thing umbrella insurance covers. This type of insurance can help pay for a legal defense, judgments against you, and more. It’s often used in addition to homeowners, auto, or liability insurance to ensure you don’t have to pay out of pocket for expenses.
Primary Policy
Your primary policy will kick in before your umbrella insurance. Umbrella insurance is reserved for scenarios when your current policy limits are exhausted. For example, if you’re being sued for $1 million, and your liability insurance won’t cover the cost of legal defense, your umbrella insurance may cover it. If there’s a judgment against you for $1 million, and your insurance will only cover $250,000, your umbrella insurance will cover the remaining $750,000.
Uncommon Situations
Umbrella insurance in Clarkston, MI, is commonly used to cover certain risks that most people don’t face daily. For example, most people don’t deal with slander or libel lawsuits, but defamation lawsuits are typically covered. Some pet owners have umbrella insurance to protect themselves if their dog bites someone. Others may have it to cover lawsuits if injuries happen on their property, such as a trampoline accident.
Exclusions
Many umbrella insurance policies have exclusions. For example, most don’t cover intentional acts of harm. For instance, if someone sets out to ruin someone else’s life and gets sued for defamation, the insurance policy will not cover legal expenses because their actions were intentional. Agents at The Ryan Insurance Agency serving the Clarkston, MI area can answer any questions you have.
