Umbrella insurance is a type of liability insurance that covers incidents or issues that usually are not covered by standard types of insurance policies. For instance, umbrella insurance may cover legal issues such as:
- Trip/fall injuries occurring on one’s property
- Property damage caused by the policyholder
- Rare or unexpected injuries such as those caused by a pet owned by the policyholder
- Liability in certain lawsuits such as those involving slander, libel, and other select issues
The exact terms of umbrella insurance will depend on the person’s needs, as well as the conditions of the insurance company. Umbrella insurance is sometimes called personal umbrella insurance. The coverage for umbrella insurance extends beyond the normal scope of standard homeowner’s or auto insurance.
What Are Some Common Types of Umbrella Insurance Conflicts?
Umbrella insurance plans may be linked to various types of legal conflicts. These can involve:
- Insurance fraud (for instance, where an agent or company uses misrepresentation or deceit to get a client to sign an insurance contract)
- Breach of contract
- Continuing to pay excess amounts when no longer necessary
- Ambiguous words or definitions in the umbrella insurance contract
- Confusing terms, exceptions, or exclusions
- Unauthorized cancellation of a policy
A common issue with umbrella insurance is the scope of coverage when it comes to other family members or household members. Most umbrella insurance plans only cover the policyholder, and confusion can arise if the person believes that others in their household are covered by the insurance plan. These are known as household exclusions, and they can often create unexpected issues if they are not properly understood.
What Are the Legal Remedies for an Umbrella Insurance Dispute?
Most remedies for umbrella insurance disputes are similar to remedies for contract disputes. For instance, a non-breaching party may receive a damages award for monetary costs incurred by a policy violation. These will help compensate them for losses directly caused by the breach.
Alternatively, the court may issue other remedies, such as instructions to rewrite a portion of the contract. In many cases, the standard used by the court is “whether a reasonable person would attempt to read or understand the policy terms.” This can often be difficult to interpret depending on the facts and circumstances. Thus, it is generally recommended to seek the assistance of a legal professional for assistance with an insurance dispute.
Should I Hire a Lawyer for Help with Umbrella Insurance Legal Disputes?
Umbrella insurance disputes can often involve some complex legal terms and concepts. You may need to hire a personal injury lawyer in your area if you need any assistance with any type of insurance dispute. Your attorney can assist with contract terms, negotiations, and documents. Also, if you need to file a lawsuit with the court, your attorney can provide legal representation and guidance during formal hearings.