With every asset you own, you also assume ownership of any liability that each property presents. Standard home and auto insurance policies can cover a portion of damages in a liability case, but sometimes you may be left handling the difference. To make sure you’re protected in the event of an accident involving your property, umbrella insurance is a crucial component of your insurance plan. 

What Is Umbrella Insurance?

Also known as personal liability insurance, umbrella insurance extends the liability coverage of your home, auto, boat, and other insurance policies. It acts as a fail-safe if you’re liable in circumstances with considerable costs for damages. This policy can cover the cost of healthcare, repairs, legal fees, and other expenses that exceed the allotted coverage of a standard policy.

When You Should Get an Umbrella Policy

You Own Property or a Vehicle

When you own large-scale assets, like a home or a car, you are liable for any accidents that involve them. If a person falls down the stairs on your property, they can sue you for damages. If you lose the case, and your insurance doesn’t cover the full expense under its included liability coverage, you will have to pay the difference out of pocket.

Umbrella insurance bridges this expense gap in the event of an accident that holds you liable. As a rule of thumb, even if you have home or car insurance for your assets, it’s beneficial to add on this coverage to avoid any mishaps with liability. 

Additional liability coverage is particularly crucial if you rent out your property. If a renter slips and falls or otherwise injures themselves on the premises, umbrella insurance will keep you protected from any legal issues related to their case. 

You Have a Pool

Pools on your property pose a significant liability threat due to the risk of drownings—particularly for small children. While precautions like pool alarms and fences help manage this risk, umbrella insurance is essential for full liability coverage with this type of home addition. 

You Own a Pet

Your pets are your family, but in some situations, they can act erratically and lash out at strangers. If your family pet injures someone, you will be held liable should the victim decide to sue. Umbrella insurance keeps you protected in the event of this claim. 

For over a hundred years, First Insurance Company of Hawaii has offered the residents of Honolulu, HI top-rate insurance. From umbrella insurance to home, business, and auto policies, they provide comprehensive coverage with a personal touch. For those facing non-standard risks to cover, their team can create custom solutions that work for your needs. For more information about this insurance carrier, visit their website or call (808) 527-7777 today.