What every homeowner should know about umbrella insurance

Personal umbrella insurance is a complicated policy designed to provide an extra layer of liability protection to your existing policies. Many homeowners believe they don’t need the policy if they have home insurance until they’re sued for damages exceeding their home insurance liability coverage limits. If you’re looking to buy umbrella insurance in Clarkston, MI? Here is what you need to know about the policy.

You need home insurance to get umbrella insurance

Umbrella insurance is not self-sufficient. That means you need to buy home insurance before purchasing umbrella insurance.  In the event of an accidental injury or property damage, your home insurance will be used to pay for medical expenses or losses. Umbrella insurance only comes in if home insurance is inadequate to cover all the costs.

Your personal property is not covered

Umbrella insurance does not cover your personal belongings. That’s why The Ryan Insurance Agency recommends buying home insurance to protect your property. Umbrella insurance is only an extension of your home or auto insurance liability coverage.

Umbrella insurance is not the same as excess liability insurance

Many people in Clarkston, MI, often refer to umbrella insurance as excess liability insurance, but these are actually different types of policies. For instance, if you bought excess liability coverage on your home insurance, you’re likely to get additional protection in case a guest is injured in your home. However, you will not get coverage for libel or slander as it is not part of home insurance.

Malicious or intentional acts are not covered

If your child or another person living in your home attacks or damages another person’s property intentionally, both home and umbrella insurance will not cover the damages.

If you have more questions or need to buy umbrella insurance, you can always speak to our agents at The Ryan Insurance Agency, and they will be happy to assist you. Feel free to call us anytime.