If you ever find yourself losing a lawsuit and owing more than your policy can pay, you’ll want to have umbrella insurance. Just as the name implies, the policy covers a broad range of extra liabilities so that you will be well-protected from future lawsuits. Below is a brief explanation of an umbrella policy and why it is important.

What is Umbrella Insurance?

Umbrella insurance is a policy you can add to your existing one that protects you from liability claims otherwise not covered. It provides additional coverage when your existing policies have been exhausted, exclude certain claims, or cannot protect you completely.

What Does it Cover?

An umbrella policy can cover you for claims dealing with libel, false imprisonment, and slander. It can also cover you when the damage to someone else’s property has exceeded the amount your homeowner’s, renter’s, or auto insurance will cover. You can count on this policy when you incur an injury, unusual lawsuits, and severe damage to one’s home or car.

What Isn’t Covered?

Since umbrella policies include a vast majority of incidents, you are covered under a broad spectrum. However, there a few things that the policy will most likely exclude.

Umbrella insurance will not cover you if you or a family member intended to cause damage to a piece of property, are liable in a work-related incident, signed and agreed to incur a certain liability, or had involvement in any war-related damage. It will also not cover you if you have incurred damage to your own property. The policy only covers you if you are being held responsible for damaging someone else’s property.

Is it Necessary?

You want to make sure that you and your assets are protected. Since everyone technically is at risk of being sued, it would benefit you to purchase extra protection for the unknown future.

You should especially consider purchasing an umbrella policy if you work closer to the line of risk. This includes renting a home out, regularly hosting large groups of people, insuring a teenage driver, or employing people to work inside of your home. All of these cases increase your potential of being sued, so an umbrella policy can pad your current protection policy to ensure you receive full protection.

For more answers to your umbrella insurance questions, contact Grachek Insurance in Kalispell, MT. They take the time to listen to each client’s needs and make the best coverage recommendations. They offer umbrella policies to owners throughout Northwest Montana, including auto, home,commercial vehicle coverage, boat and watercraft coverage, and workers’ compensation coverage. Visit them online to learn more or call (406) 755-4000 to get a free quote.