Do You Need a Homeowners Umbrella Policy?

Homeowners insurance policies protect your home and belongings, but they only provide limited coverage, particularly for expensive liability risks. If you have a mortgage on your property or own it outright, then you should consider an additional umbrella policy to protect your financial investment.

What Is an Umbrella Policy?

Umbrella insurance extends your homeowners liability insurance coverage in case of injury or claims that would exceed your basic policy. This kind of insurance does not just protect you as the policyholder, but anyone who lives in your household. This kind of policy can be obtained from a home insurance company, such as an insurance company in Peoria AZ.

What Benefits Does an Umbrella Policy Provide?

The types of claims an umbrella policy could cover include lawsuits, injuries to others on your property, your animal bites, false arrest, and slander. For example, your dog escapes your yard and bites a child. The child’s parents sue you because of the injury to their child. Your umbrella coverage will kick in to pay for the damages to the limit that is held by your coverage.

What Is Not Covered by Umbrella insurance?

Umbrella insurance covers injuries and damage that occur to individuals and property outside your household where you might be held liable. It will not cover injuries or damage to you as the policyholder, the members of your household, or your property. Property insurance can cover those kinds of risks through your basic policy.

Umbrella policies protect against liability claims that exceed your other insurance. The policy provides additional protection against claims such as bodily injury and outside property damage resulting from negligence in connection with homeownership, maintenance, or use. Homeowners umbrella insurance is a valuable piece of protection you can use if something happens at your home and threatens your finances.

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