Because humans are to error, that’s why we buy liability insurance to cover damages when you cause physical injury or property damage to third parties. Unfortunately, your insurance isn’t perfect either. It can let you down when you are facing substantial financial liabilities.
Fortunately, you can amp up your liability coverage by purchasing umbrella insurance from Commonwealth Insurance Center, serving Williamsburg, VA, and the surrounding areas.
What is umbrella insurance?
Think of umbrella insurance as the safety net you run to when your standard policies run out. For instance, if you are sued for $300,000, and your liability coverage is up to $200,000, you are responsible for topping up the difference from your pocket. However, your insurance can cover this difference if you have umbrella insurance.
It’s important to note that umbrella insurance is slightly different from excess liability insurance that gives you higher coverage on your current liability policy. On the other hand, umbrella insurance provides additional coverage that is ordinarily not included in your typical insurance policies. For instance, most umbrella insurance covers legal fees if you are accused of libel/slander.
Is umbrella insurance mandatory?
Virginia State doesn’t require you to carry umbrella insurance, but it’s vital to purchase one if you have any kind of livelihood. Specifically, if you are in the below categories, you should buy umbrella coverage.
- You own property
- Own a dog or other possessions that can cause injury to others
- You are a high net worth individual
- Have an inexperienced driver in your household
- Participate in sports that you are likely to injure others (like hunting)
What does umbrella insurance not cover?
While your umbrella insurance might seem like the mother of all liability coverages, it may not save the day in the below circumstances:
- Own-inflicted injuries or property damage
- Damages from breach of contract
- Intentional or criminal acts
- Losses to be covered by your typical insurance policies
Are you looking for umbrella insurance? Please get in touch with Commonwealth Insurance Center, located in Williamsburg, VA. This way, you will be protected against injuries, personal liabilities, and certain lawsuits.