In many situations, your auto and home insurance policies will pay for damages resulting from most accidents you may cause, but those coverages may not provide all the protection you need. For instance, if the damages resulting from any accident you cause exceed the liability limits of your policy, you may be held responsible for the difference. To protect against the unexpected, everyone should consider purchasing umbrella insurance, extending their liability coverage and shielding their assets from lawsuits.

Definition

An umbrella insurance policy provides high-value liability coverage that extends beyond that provided by your auto, renter’s, or home insurance policies. When those limits have been exceeded by a valid claim, the umbrella insurance will cover the difference, along with any legal costs associated with your defense

Excluded Incidents

In addition to extending your liability coverage limits, an umbrella policy will also pay for valid claims resulting from situations specifically excluded in other policies. For instance, if you are named in a defamation lawsuit or the tenants of a rental property cause an injury to someone else, your umbrella coverage will provide protection where other policies do not. Because these incidents can occur at any time, everyone should consider purchasing an umbrella policy.

Coverage

Because a liability lawsuit could threaten everything you own, you should carry coverage at least equal to your net worth. However, the plaintiff in a successful case may also receive a judgment against your future earnings, so protecting your long-term wealth may require even higher limits. Policies with $1 million in coverage provide enough protection for most families and can be surprisingly affordable.

As one of Fairfield, OH’s leading independent agencies, Lighthouse Agency offers umbrella, auto, and home insurance policies from some of the nation’s leading carriers, with the expertise to help select the perfect product for your needs. Because they work for you, not the insurance company, you can be confident that their team will strive to find the ideal coverage at the best prices available. Visit their website to learn more about umbrella insurance, call (513) 860-9100 to request a home insurance quote, or follow their Facebook for more tips and updates.