Umbrella insurance, or “personal umbrella insurance,” is a type of liability insurance whose coverage is broader than that of normal homeowner’s insurance or automobile insurance. It is intended to “cover” various unexpected injuries, accidents, and occurrences that are not normally covered by standard insurance policies.
An example of an incident that might be covered by umbrella insurance is where a guest visits the policyholder’s home and gets injured in a swimming pool accident. The homeowner’s normal insurance might not cover the guest’s injuries; however, an umbrella policy might cover this incident that would not fall within the confines of normal insurance coverage.
What Does Umbrella Insurance Cover?
Umbrella insurance policies will differ from person to person and from company to company. However, they generally provide very broad range of coverage for various types of injuries, accidents, and even legal liability issues. They generally cover situations and events that are outside the scope of more basic insurance policies or contracts. For instance, umbrella insurance may cover:
- Injuries to guests at your home
- Dog bite cases or other instances where your pet has injured another person
- Property damage where you were at fault, or where your pet or child was at fault
- Trip and fall incidents on your property
In addition, some umbrella insurance policies will also cover costs associated with legal liability and lawsuits. These lawsuits may include causes of action brought against the policyholder for issues such as slander/libel, false arrest, and malicious prosecution.
What If I Have a Legal Dispute Involving Umbrella Insurance?
Umbrella insurance can help a person avoid various liability and costs associated with unexpected or unplanned occurrences. However, they can also be a source of different legal disputes or issues. For instance, umbrella insurance policies can lead to claims such as breach of contract, insurance fraud, or a default on insurance terms. Such disputes may lead to a legal claim of action or a lawsuit.
In some cases, the dispute may need a lawsuit to be resolved. This can result in a damages award for the non-breaching party, to compensate them for losses caused by the violation. Alternatively, the court might order a different remedy, such as a re-writing of an insurance contract term (especially for terms that are ambiguous).
Do I Need a Lawyer for Help with Umbrella Insurance Issues?
Umbrella insurance policies can often be quite technical and complex. You may need to hire a personal injury lawyer in your area if you need help understanding an umbrella insurance contract. Your attorney can explain your rights and options under the contract, and can also assist with contract negotiations. Also, if you encounter any legal issues or disputes in relation to the contract, your lawyer can represent you in court if you need to file a lawsuit.