Who Pays When a Claim is More Than Your Liability Coverage?


Your backyard pool or family pet may be more of a liability than you realize. If someone gets hurt swimming on your property or if your pet bites someone, your homeowners insurance may not cover all of the potential claim. That’s where an umbrella policy comes in.

What is umbrella insurance?

An umbrella policy is insurance that supplements the liability coverage offered by your homeowners and auto insurance policies. Simply put, having an umbrella policy delivers peace of mind and helps to protect your hard-earned savings.

How does it work?

What if you cause an auto accident that results in $500,000 worth of damages? While your auto coverage might cover $300,000 in liability, you are still personally responsible for the remaining $200,000. In this case the right personal umbrella policy will cover what your auto insurance did not.

These unexpected costs are more common than you think. For example, insurance settlements for dog bites total more than $530 million per year in the U.S., according to the Insurance Information Institute. Close to $800 million in liability claims related to dog bites and other dog-related injuries were paid in 2019 alone. That’s why it is important to know what your homeowners policy does and does not cover if you have a pet.

More to consider

Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations. Consider an umbrella policy, especially if you have a teenage driver, rental properties, swimming pool, or pets.

Interested in securing this essential personal coverage? For assistance with all your coverage needs, contact an insurance professional at Westwood Insurance Agency today.