What is an umbrella policy?

An umbrella policy is a type of insurance policy that provides additional liability coverage beyond the limits of other insurance policies, such as homeowner’s insurance or auto insurance. It provides increased protection for individuals in case they are sued and found liable for damages, and the damages exceed the limits of their other insurance policies. In Florida, an umbrella policy can be purchased from an insurance provider, and it generally covers liability claims for bodily injury and property damage. The umbrella policy is also referred to as excess liability insurance, and it can help protect a person’s assets, such as their home, car, and savings, in the event that they are held responsible for a large amount of damages. In some cases, an umbrella policy can also be used to cover legal defense costs if a person is sued. The coverage limits of the policy are set by the insurance company and generally range from one million to five million dollars. Having an umbrella policy in place can be beneficial for anyone who may be liable for a large amount of damages. In the state of Florida, individuals are encouraged to review their current insurance coverage and determine if an umbrella policy is necessary. It is important to note that an umbrella policy does not cover any intentional or criminal acts, so it is important to understand the limitations of the policy before purchasing it.

Related FAQs

What are the legal requirements for filing an insurance claim?
What is the purpose of an insurance captive?
How does the law protect insurance policyholders?
What type of coverage is included in auto insurance policies?
What is the difference between an insurance adjuster and an insurance investigator?
How do I choose an insurance provider?
How do insurance companies investigate fraud?
What are the penalties for not paying an insurance premium?
How do I dispute an insurance claim denial?
What is the process of filing an insurance claim?

What is an umbrella policy?

Related FAQs

Related Blog Posts