Umbrella Insurance in Pennsylvania

In talking to some of our clients at The Good Insurance Group LLC, we have found that most clients do not have a clear understanding of umbrella insurance and what exactly it is.  

While your homeowners and auto insurance policies carry some liability coverage in the event you’re sued for an accident, these coverage limits may not be enough to protect your finances from legal expenses and settlement payouts. Umbrella insurance can help in the event you’re found at-fault for an accident by providing funds to cover your legal costs and up to your coverage limit in a settlement.

What Everyone Should Know About Umbrella Insurance

The purpose of purchasing umbrella insurance is so that you’ll be covered should you find yourself liable for damages that exceed the limits on your homeowners or automobile insurance policies. For example, if you are found to be at fault in a car accident, and the damages to the other guy’s vehicle plus medical costs exceed the limit on your auto insurance, you’re liable for that excess. Umbrella insurance would kick in at that point, and pay the rest.

This also applies should a visitor to your home suffer an injury found to be caused by negligence on your part, such as tripping over uneven pavement or badly cracked sidewalk on your property, something you’ve kept meaning to have repaired, but keep putting off. If the injuries require hospitalization and loss of employment for a period of time, a lawsuit could very well result in damages that go over what your homeowners’ insurance will pay. Umbrella insurance to the rescue!

How Does an Umbrella Policy Work?

Here are some examples of incidents an umbrella policy could cover if your homeowner's insurance or auto insurance wasn’t enough:

• Your dog runs out of the house and bites a neighbor who was going for a walk in front of your yard.  Your neighbor sues you to cover her medical bills, lost wages, and pain and suffering.
• Your child gets into a fight at the playground and pushes another child, who falls and breaks their leg.  The other child's parents sue you.
• Your traveling the interstate at night and swerve to miss a deer, but cause a 5-car accident and your auto insurance property damage coverage isn’t high enough to replace all 5 accident victims' vehicles. Nor is your personal liability coverage high enough to pay for their medical bills.
• You make lunch for your child's preschool for a birthday lunch.  Several students develop food poisoning and their parents sue you.
• Your teenager throws a party at your house while you’re out of town. Someone brings alcohol to the party, and one of the guests is arrested for driving under the influence on the way home. You are sued.

You might have noticed that, even though umbrella insurance acts as coverage above and beyond your homeowners and auto insurance, the incident doesn’t have to involve your property or your vehicle for your umbrella insurance to cover it. You’re also covered worldwide, with the exception of homes and cars you own under other countries’ laws. 

Is Umbrella Insurance a Good Idea for You?

That's a decision only you can make, but as you can see from the above examples, these are instances that can easily befall anyone in Pennsylvania.  To have all your questions answered, contact the experts at The Good Insurance Group, LLC today for a free policy review and rate quote.