Cover for Higher Claims
Most people have personal liability insurance through their home and auto insurance plans. These plans include a policy limit that determines how much can be paid out for one incident and throughout the policy term. While this is typically more than sufficient to cover most accidents, there is always a risk that you could be held liable for damages that exceed these base insurance plans.
If you are found to be liable for damages that exceed your existing policy limit, you will be responsible for covering these damages. If you have an umbrella insurance plan in place, it will give you the coverage you need on top of your existing plans.
Coverage for More Risks
Those with liability coverage through their home and auto insurance plans will receive coverage related to accidents that occur in the home and on the road, but there are risks that may not be covered.
Some liability risks not covered by home coverage include slander, libel, mental anguish, and false arrest. If you are found liable for these claims, you will have to pay the damages completely out of pocket. An effective Umbrella insurance plan will cover these damages with more blanket coverage.