5 Things You Probably Didn’t Know about Umbrella Insurance

Umbrella blocking water

Generally speaking, umbrella insurance offers an extra layer of liability protection and peace of mind should you find yourself responsible for an accident with substantial costs. However umbrella insurance is more beneficial for some people than others, and there are some exclusions you may not know about that would be important for your specific situation.

To learn more about umbrella insurance and if it would be a good fit for you, here are five things you probably didn’t know about umbrella insurance.

1.     There are Certain Risk Factors That Could Impact Your Coverage

Perhaps the most attractive aspect of an umbrella policy is the liability coverage, because we all know how expensive lawsuits can be. However some people are more prone to lawsuits than others. Here are some risk factors for people likely to be involved in a lawsuit and who should consider purchasing umbrella insurance:

  • Those who have a long commute
  • Those who regularly travel during rush hour
  • Those who own dogs
  • Those who have a swimming pool, trampoline, or outdoor jungle gym
  • Those who entertain others frequently

2.     Not All Lawsuits Will Be Covered

As previously mentioned, lawsuits are one of the main reasons to consider purchasing umbrella insurance. Once the limit has been paid out for your primary liability coverage, the rest can be covered by your umbrella policy. The exception to this is if you commit a crime or an intentional act of harm. This includes sexual harassment, discrimination, intentional bodily or property harm, or damages from driving under the influence. Umbrella insurance is meant to protect you from accidents, even if you’re at fault, but not malicious acts.

3.     “Attractive Nuisances” Could Influence Your Coverage

This is the term for features or equipment on your property that can be hazardous. These include swimming pools and hot tubs, trampolines, swing sets and outdoor jungle gyms, and sports equipment. Your umbrella insurance will cover personal and property injury sustained from attractive nuisances.

4.     Dog Owners Could Benefit from Umbrella Insurance, but Some Breeds May Not Be Covered

Dog bites are more common and harmful than you may think. More than one-third of all homeowner’s insurance liability claims are from dog bites and dog-related injuries. Although the liability coverage from your primary insurance may cover dog bites, it’s important to realize that some dog-related injuries require reconstructive surgery as well as compensation for lost wages, etc. This is when umbrella insurance will save you. Additionally, some dog breeds are excluded from coverage and should be inquired about if you suspect your breed may not be covered. You may purchase a rider in this situation.

5.     You Might Need to Purchase Additional Riders to Adequately Protect Yourself

Although umbrella insurance is meant to cover those who are injured on your property, there are some scenarios that may not be covered. Domestic workers, such as nannies or housemaids who do not have their own insurance, are likely not covered by yours either. In this situation, do not assume your umbrella insurance will cover them if they fall down the stairs or receive other injuries on your property. In this situation, you will need to speak to your insurance agent about acquiring a special rider to further protect yourself.

Learn More

Even if you are free from the above risk factors, accidents can and do happen to even the most cautious individuals. The safest thing you can do is be well-insured to protect yourself from even the most unlikely of accidents. To learn more about umbrella insurance in Reno, visit the professionals at Heuer Insurance Agency.