Understanding how an umbrella insurance policy works in Boise ID helps demonstrate the importance of this type of policy.
An umbrella policy will kick in after either your homeowners or auto insurance policy coverage is maxed out. If you have boat liability insurance, your umbrella policy will also kick in after that. Umbrella insurance will also cover some other liability claims that other policies won’t cover, including slander, false imprisonment, and libel. Umbrella insurance is useful for rental properties, since it can provide coverage beyond your homeowners policy. An agent at Fuhriman Insurance Agency can help determine how much coverage to have for your situation.
To understand this policy, think of this example. You have a party at your home and a guest slips on the steps. The guest has very high medical expenses and then also sues you. The jury sides with the guest and gives her a settlement of $1 million. However, your homeowner’s personal liability only covers $300,000, which means that you owe $700,000.
You would have to come up with this money somewhere, which usually comes out of retirement savings. Without retirement savings, you may have to work for an additional time or reduce expenses to build up your savings. If you have an umbrella policy, then your policy will cover what your homeowners insurance doesn’t. This means that you don’t have to dip into any savings.
This policy also covers the attorney fees and the other expenses that are related to the lawsuit, which aren’t going to be covered under your homeowners policy. You won’t have to pay a separate deductible for the umbrella policy to kick in, so you are only out the money for the deductible on your homeowners insurance. If you were found liable in a claim where your homeowners or auto insurance didn’t have coverage, then you would have a deductible for umbrella insurance, but not in this case.
Contact Fuhriman Insurance Agency, serving Boise, ID, to get a quote on umbrella insurance.