Umbrella insurance can be a useful policy to have no matter what you do in life. However, you'll want to get the proper policy for your situation. There are three different types of umbrella policies you can choose from. Here are the three different types of umbrella insurance you can purchase.
Personal Liability Insurance
Personal liability insurance is what most people consider to be an "extra layer" of protection against accidents. This is protection that is there for you if you've already reached your maximum payout in other situations or if you're not covered at all.
You would need this type of insurance in a variety of situations. Personal umbrella insurance will protect your primary resident, cars, motorcycles, seasonal or secondary houses, most watercrafts, recreational vehicles, and rental homes. This type of policy can provide around $1 million to $2 million in liability.
This type of insurance will cover several situations. For instance, if someone in your home hurts themselves - even a trespasser - they can sue you for their medical bills. This isn't a situation you want to be in. This can cause debt to pile up quickly. What else does it cover? It will cover you for libel, slander, or other personal injury as well as loss assessments. Most personal umbrella policies will also cover you worldwide and in a non-owned watercraft.
Commercial Liability Insurance
Commercial insurance can also be considered extra protection in the chance of accidents. Most businesses already have insurance, but that insurance is usually too low. Commercial umbrella policies work with your current insurance to keep you from falling through gaps, which can cause debt.
This type of umbrella insurance covers you commercial general, business owners, business auto, and employer's liability. Basically, this means if someone hurts themselves, your policy will pay for any bodily injury, property damage, and attorney's fees. It also covers you worldwide in the case of a lawsuit overseas.
There are several different types of businesses that need commercial liability umbrella insurance. This can include retail stores, salons, religious institutions, funeral homes, restaurants, motels, service stations, and much more.
The amount of insurance businesses need usually exceed that of personal umbrella policies. Most companies will allow commercial locations to get up to $15 million in coverage if they need it. Each company is different, so speak to an insurance agent before assuming how much you actually need.
Farm and Ranch Liability Insurance
If you own a farm or a ranch, you can also be covered under an umbrella policy. Just imagine what would happen if one of your animals wandered into the road, causing someone to have a vehicle accident. You'll have to pay for the damages, but you may not be covered. Well, farm and ranch umbrella policies will have you covered. This will pick up where your existing farm and ranch policy ends. Some companies will also allow you a customized package for your needs.
This type of policy will cover you from around $1 million up to $15 million based on the insurance you choose. In addition to what was mentioned before, farm and ranch liability umbrella policies will also provide personal injury protection and worldwide protection. Furthermore, it will also cover your in the case of a false arrest and any claim or defense expenses that may occur.
