Umbrella LiabilityUncategorizedJune 17, 2016We purchase insurance to protect our family, property and assets. However, what happens if an accident occurs and the homeowner or auto insurance coverage you currently have is not enough to cover the cost? This is where umbrella liability insurance kicks in. Umbrella liability insurance is additional liability insurance coverage that tops up your existing coverage (homeowner, auto, boat, employer, etc). It acts as an additional layer of security to protect your expensive assets from lawsuits for damages to others’ property or injuries to others in accidents. Umbrella liability insurance serves three main purposes: To provide additional coverage when the limits of the underlying insurance policy (homeowner, auto, boat, employer, etc) is exhausted. To cover the remaining amount of what is left uncovered by the underlying insurance policy. To protect from certain claims that are excluded by the other insurance policies you own. So what exactly does the umbrella policy help you cover? The coverage includes: Property damage Injuries Certain lawsuits Legal defence costs for a covered loss Worldwide coverage – except on ownership of homes or cars in foreign countries Personal liability situations(damages caused by you or your household) Bodily injury – covers costs of damages to another person Property damage – protects costs of damages to another’s property Owners of Rental – protects you as a landlord Slander Libel False arrest, detention, imprisonment Shock/mental affliction Umbrella insurance is sold in increments of $1,000,000 and is necessary and cost efficient in its coverage. But, how do you know if you need it and how much do you need? Consider your current lifestyle and the following questions. Are you frequently exposed to risky activities? (motorcycle, diving, etc.) Do you have very valuable assets or a high net worth? Do you own multiple residences? Do you have a range of recreational vehicles? Do you travel frequently around the world? Do you have teenagers? If you have answered yes to any of the above questions, umbrella liability insurance can benefit you. Talk to one of our brokers at Pacific Insurance Broker Inc. and they can determine which coverage limit is best for you. An example of how Umbrella Liability Insurance works: Finally, let us consider an example to further understand how umbrella liability insurance works. Let’s say your neighbour’s son comes over to swim in your pool. He slips on the wet concrete and hits his head, breaking his neck. Your neighbour sues you for the medical fees of $2,000,000. Your homeowner’s liability only covers up to $1,000,000. Fortunately, you have umbrella insurance, which thus will cover the remaining $1,000,000. If you did not have the umbrella liability coverage, than you would personally be responsible for the remaining $1,000,000. Umbrella liability insurance provides a peace of mind for your family, your assets and your future. Contact a representative at Pacific Insurance Broker Inc. to find a suitable umbrella coverage limit, tailored to your affordability.