Why You Need Personal Umbrella Insurance in California

Insurance by Castle - Personal Umbrella Insurance

California homeowners and residents can protect themselves from financial liabilities incurred through unexpected lawsuits. With personal umbrella insurance, you may reduce or eliminate paying out of your own pocket for a plaintiff’s claimed expenses.

Serious car accidents can result in some of the largest personal injury and damage awards. An auto insurance policy, however, may have a limit on how much is paid on injury claims. If you are sued, you could be held personally responsible for paying the amount that exceeds your auto insurance policy’s coverage.

A Car Accident May Not Be Fully Covered

If a motorist strikes another vehicle and is found at fault for the collision, an injured party could file a claim for injury costs. After the claimant recovers the maximum amount for damages and bodily injury available through the insurance carrier, the policyholder can then be held liable for the balance.

When payments from an existing insurance policy reach their limit, an umbrella policy’s coverage begins. Personal umbrella insurance, however, does not cover the policyholder’s own injuries. It also excludes coverage for harm caused by an unlawful act such as driving under the influence.

Determine How Much Umbrella Insurance Is Needed

A general rule of thumb is there should be enough personal liability insurance to cover an individual’s net worth. After adding up assets and subtracting debts, it can be reasonably determined how much personal umbrella insurance California residents need.

The coverage limit from an existing insurance policy’s liability protection will show how much more is required. Umbrella insurance plans typically make up the difference, and many policies offer high minimum liability protection amounts. Individuals expecting to generate higher revenue in the future can include their potential earnings when setting up an umbrella plan.

Umbrella Insurance Covers Unexpected Events Such as a Dog Attack

A comprehensive umbrella plan protects individuals and households against civil litigation and legal issues. A lawsuit stemming from an unprovoked dog attack can place the canine’s owner in serious legal jeopardy. The cost of a lawsuit and an attorney to defend against claims may also be covered by an umbrella policy.

Unprovoked animal attacks can result in serious physical and emotional injuries. California’s Civil Codes hold dog owners liable for the harm caused by a bite or an attack even when the dog doesn’t have a history of aggression.

A first-time dog bite does not let the owner off the hook for a seriously injured party’s medical bills. With personal umbrella insurance California dog owners can, however, rely on their policy to cover expenses for a bite victim’s emergency hospitalization or reconstructive surgery.

Umbrella Insurance Can Protect Against Online Litigation

The internet and social media have made it possible to sue individuals for damages over seemingly innocent comments or reviews posted online. By claiming their reputation has been ruined, commercial establishments can file lawsuits against former customers or associates for social media defamation. Personal umbrella insurance can cover the damages claimed as a result of a household’s online activities.

A personal umbrella policy typically comes with a limit that can cover claims for injuries, property damage or defamation. It could also cover court and attorney’s fees.

Contact us at 800-644-6443 to learn more about how umbrella insurance policies can protect your household from unexpected liabilities.

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