Umbrella liability coverage is like nay insurance. You should know what you're covered before you file a claim or rely on the insurance to cover your situation. All umbrella policies are also different. To make sure you're getting the best policy for your situation, here are 10 questions you need to ask.
- How much does the policy cover?
You'll want to know exactly how much your umbrella insurance covers. For some insurance companies, this can vary anywhere between $1 million and $5 million for personal umbrella insurance. Commercial umbrella insurance can be up to $15 million. You don't want to pay more for coverage that is unnecessary, but you also want to be sure you're completely insured in the case of a lawsuit. - What does the policy cover?
Like coverage, each policy will cover different things. Generally, they cover your home, auto, and personal bodily harm. Apart from that, that's where businesses differ. The situation may be specific for certain claims. You'll also want to know if it covers flooding, dog bites, and other issues. Be sure you know exactly what your plan covers. - How much does it cost?
The cost of each plan is dependent on different factors such as net worth and your risk profile. These are only two of the factors, but there are many others. This can impact the monthly cost of your policy. How much coverage you're requesting will also affect the cost. Once you completely go over these factors and determine how much coverage you need, remember to ask about the monthly cost. It is essential to get an affordable plan. - What about contractual liability coverage?
This is the type of liability of someone else that is under contract. The common type of situation this issue arises in is in facility rental contracts. This is when someone rents a cabin at a resort or a reception area for a wedding. The fine print of these contracts can be tricky and often state you'll pay for any damages or personal injuries done during the time of the contract. You'll want to be sure that your insurance will pay for issues revolving around contractual liability. - Does the policy cover libel or slander?
Reputation can be an important thing. This can be anything from something said in the public to something published on an online forum. Libel and slander cover any reputational damage that may arise. Some umbrella insurance policies also cover teenagers on social media sites. - Am I covered worldwide?
If a lawsuit occurs outside of the United States, you'll want to know if you're covered through your umbrella insurance policy. If you often travel abroad, this is a question that should be at the top of your list. Maybe you even have a second home overseas. While most provide coverage worldwide, some may not. Ask this question to be 100% sure. - Will it cover my watercraft?
Umbrella insurance companies will provide a policy for your car, but it may not extend to your watercrafts. This can be anything from a boat to a jetski. Should anything happen on your boat, like someone fall and hurt themselves, you'll want to be sure that you're covered. If not, you should find an insurance company that extends to your boat. Thankfully, many will. If they do, ask how much horsepower they will cover. Some stop at 25 horsepower while others go to 75. - Does it cover rental vehicles?
If something happens in a rental vehicle, you might have purchased insurance or your own auto insurance may cover you. However, if you aren't covered previously or if you accumulate charges over the covered amount, you should know if your umbrella policy will kick in. Most rental companies will require you to sign a document saying you're responsible for any damage done to the vehicle. An umbrella policy should cover you in the chance of an issue. - What about my family members?
Generally, the members of your household are covered under the same policy as you. However, if you own a personal umbrella coverage, they may only cover you, your household, and your vehicle. This may not extend to another car that is not owned by you. Understand what exactly is and is not covered in your policy regarding family assets.? - Does it cover uninsured or underinsured motorists?
If someone gets in an accident with you and they do not have insurance or don't have enough insurance, you'll need coverage. An uninsured motorist can put you and your family in major debt. Avoid this issue by asking if your umbrella policy covers underinsured or uninsured motorists.
