Personal insurance like a homeowners or auto policy is always a worthwhile investment. However, these coverages provide protection only to a certain extent. In certain scenarios, you can address the coverage deficit by getting
umbrella insurance. The extra policy can pay for expenses arising from specific liabilities, such as compensatory damages against you for defamation (libel or slander). Read on to learn more about umbrella insurance protections and benefits.
Why Would Anyone Need an Umbrella Insurance Coverage?
Umbrella insurance isn't for businesses only. Even individuals can benefit from the additional protection the policy provides. For example, in the social media and internet age, a user can get sued for writing something on the web that could hurt the reputation of another. This can happen to anyone, so it's always good to have proper coverage.
Consider a scenario where you've been to a holiday resort but didn't like their service. You quickly log in to your travel review site account and leave negative feedback over the bad experience. If the resort sued you for your comments, you'd be looking at unexpected expenses, including legal defense. Similarly, people have got sued for writing negative comments about other persons or brands on Facebook, Twitter, and other social media platforms.
Umbrella insurance can pay for these costs and protect you from financial loss if you're charged in court.
What Is a Personal Umbrella Policy, and Why Should You Have It?
You get extra liability protection beyond your primary insurance coverage limits when you have a personal umbrella policy. It can help pay your attorney for defending you in court against a liability claim. If a court judgment or settlement is made against you, a personal umbrella policy can pay for it.
The goal of having an umbrella policy is to cover gaps left by your underlying insurance, such as homeowners or auto policy. Any payment kicks in after the liability limit on your primary cover has been exhausted. For example, your homeowners insurance can pay for a claim against you by a guest injured at your home to a certain limit. If the claim exceeds the limit, your umbrella coverage kicks in.
The extra liability coverage can also help pay for expenses not covered by any other type of personal insurance. It usually includes costs associated with libel or slander claims against the policyholder.
What Are the Requirements for Personal Umbrella Coverage?
Personal umbrella insurance is a supplemental policy, meaning that you can't get it without specific underlying coverage. According to the Insurance Information Institute, the requirement for the extra protection is a minimum of $300,000 limit on your homeowners insurance liability or at least $250,000 in auto liability coverage. You can purchase your personal umbrella liability coverage in $1 million increments.
A Personal Umbrella Policy Doesn't Cover Certain Types of Defamation
As with all types of liability insurance, an umbrella policy usually pays for accidental rather than deliberate harm caused to another person or party. Generally, the policy doesn't cover legal judgments/settlements for defamation in scenarios such as:
- You're sued for defamatory statements made as a business rather than an individual. You'd need commercial insurance for protection in this scenario.
- You didn't have umbrella insurance when you allegedly defamed the complainant
- You wrote or said defamatory statements that you knew to be false
These are some crucial
umbrella insurance facts to keep in mind when considering getting additional personal liability protection. If you need help expanding your basic liability limits to cover libel or slander, contact us today at
Fuller Insurance Agency in Southern California. We're happy to help you find personalized liability protection based on your unique needs.
