The Benefits of Adding Umbrella Insurance to Your Homeowners Policy

Written By Charlotte Insurance on May 19, 2023. It has 0 comments.

an illustration of a home being protected by an umbrella insurance policy

Even though you think you have enough coverage on your homeowner’s insurance policy, it never hurts to have some extra precautions in place. For example, an umbrella insurance policy, which is designed to provide some additional liability coverage, can be added to your homeowner’s policy. Since these umbrella policies are inexpensive, they provide plenty of benefits at a fairly small cost.

Wondering what these umbrella insurance benefits are? Here are some of the most crucial ones you’ll want to be aware of.

1) They Cover You and Anyone Residing in Your Home

General homeowner’s insurance policies are designed to cover you, the policyholder. For example, if your dog bites someone, then your insurance might pay for any related medical bills or expenses. However, if you have someone living with you, like your sister or mother, and their dogs bite someone, you may be out of luck unless you have an umbrella insurance policy. This works for rental houses as well. If you’re a landlord and your renter’s dog bites someone, your umbrella policy may cover any medical expenses.

2) You Won’t Have to Pay for Liability Claims Out of Pocket

Sometimes, depending on the circumstances, your homeowner’s insurance won’t pay for certain liability claims. Or, if the insurance will cover the claim, they might only pay for a specific amount, leaving you with plenty of out-of-pocket expenses. An umbrella insurance policy is designed to kick in and cover these extra liability claims, so that you won’t have to come up with the cash. It helps save you money in the long run.

3) They Provide Coverage Where Your Homeowner’s Insurance Doesn’t

Homeowner’s insurance comes with limitations and exclusions. These prevent the policies from covering a number of different things that you could be sued for. Need an example? If you provide a number of cupcakes to your child’s elementary school class to celebrate a special occasion, and those cupcakes were accidentally tainted, the parents of the kids who got food poisoning could sue you for medical bills. In this situation, your homeowner’s insurance may not be able to help you, but your umbrella policy might.

4) They Can Cover Attorney Fees and Other Expenses

Want to know another thing that homeowner’s insurance often doesn’t cover? Attorney fees and related expenses. When someone sues you for any reason, you’ll need to find an attorney and hire them to represent you. This can get expensive if the case drags on and requires a number of depositions and billable hours. Rather than pay out of pocket for these expenses, you can rely on your umbrella insurance policy. It will cover attorney fees and other related things, depending on the circumstances.

5) You Will Have Coverage for Property Damage and Other Things

Certain types of property damage aren’t covered by standard homeowner’s insurance policies. By filling in these gaps, an umbrella policy will ensure that every potential possibility is covered. You will have less to worry about because it will take over where your homeowner’s insurance fails to provide either enough or any coverage. For that reason alone, an umbrella policy is worth it.

Have Questions? Contact Charlotte Insurance

Wondering if you need to add umbrella insurance to your homeowner’s policy? Contact Charlotte Insurance. Our agents can explore and explain all available options with you and put together the coverage plan you need.

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