An umbrella insurance policy refers to coverage that exceeds the limits of the insured person's home insurance. However, it also means extra liability insurance for auto or watercraft insurance policyholders. This additional security benefits those at risk of receiving accusations for damages to another person's property. Umbrella insurance is also useful for compensating for injuries caused by a person in an accident. Here's a list of the five most common umbrella insurance claims.
One example of a claim is that the insured unintentionally hurt another person. The injured person acquired multiple injuries, and so needs immediate medical treatment. An umbrella insurance policy is a solution in this case. For example, an insured child was playing in the street but accidentally hit an older woman. As a result, the older woman got multiple injuries and needed hospitalization. The child’s umbrella policy then paid for the medical bills.
If an insured person has a dependent that disobeys his safety instructions and does not follow them, it may lead to an accident. In that case, an umbrella insurance policy may be necessary to settle the medical costs. For example, an insured mother allowed her kids to play in the backyard. She advised them to put on protective headgear at all times. However, one of the kids removed the headgear and got hit in the eyes with a bat. The umbrella insurance policy turned out to be very useful here.
An umbrella insurance claim is useful if someone gets injured or dies because of a person's negligence. For example, a babysitter makes sure that the kids that she's watching over are safe. Then, when the phone rang, she answered it. However, when she went back to the pool, she found that one of the kids had drowned. The parents of the kid could then use the umbrella insurance policy to receive a considerable sum.
If you’re the hosts of a party, it follows that you're responsible for your guests. If something terrible happens to them even after the party, you're still partly accountable, and you might need to use your umbrella insurance policy. For example, a group of teenagers drank alcohol during a party at your house. Later, they got involved in a car accident that severely injured one of them. You can use your umbrella insurance to respond to the claim.
Insufficient Auto Insurance Coverage
You can use your umbrella insurance if you lack coverage for any accident involving your car. If it’s obviously your fault, then you have your auto insurance coverage to settle it. However, if this coverage is not enough, then you’ll need umbrella insurance. For example, one woman was driving on the highway and hit another car by accident. The problem is that her auto insurance coverage was not enough to cover the entire claim amount. In that case, she can use her umbrella insurance coverage.
Some Final Words
Even the most careful people can experience the worst of accidents. The saddest part is that many are not financially ready to handle the costs of claims. In that case, you should make sure that you have an umbrella insurance. The cost of the premium is not that high, but the benefits can free you from so much headache.
At Mauser & Tobin Co., Inc, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (516) 747-0171 or Click Here to request a free quote.