What Does Personal Umbrella Coverage Protect You Against?

 

Personal umbrella insurance provides you with liability coverage that goes above and beyond what’s offered by your home and auto insurance policies. It thereby protects you against potentially financially devastating claims. Here are a few of the situations in which personal umbrella coverage can be a lifesaver.

 

Defamation claims
Defamation lawsuits have become increasingly common as we begin to live more of our lives online. There are two conditions for establishing that online defamation has occurred: first, someone has to make statements online that damage another person’s reputation and, second, these statements can be shown to be false.

 

For example, you can get sued for alleged defamation after posting a negative online review for a product or service. If what you said damaged the company’s reputation and was shown to be untrue, the company could choose to bring legal action against you. Or say your teenager voiced a strong opinion about a person or business on social media. As their parent, you could face legal action.

 

Personal umbrella insurance would protect you against liability in all instances of defamation, online or otherwise.

 

Costly car accident claims
Personal umbrella insurance provides you with extensive coverage for accident claims that exceed the coverage limits of your auto insurance.

 

Imagine you have third-party liability auto insurance that covers you for up to $200,000. If you were at fault in a car accident and the other party successfully sued you for $1 million for their injuries, you’d have to pay the difference out-of-pocket. However, personal umbrella insurance protects you against such cases.

 

Other liabilities
Personal umbrella coverage kicks when you’re held liable for an accident that isn’t covered under your other insurance policies or whose damages exceed your policy limits. Some examples include:

 

• You rent a snowmobile and cause an accident that results in property damage or injury to another
• Your bath overflows and damages the property below yours
• Your dog bites someone and the damages they sue for exceed the liability limits on your home or tenant insurance policy

 

To learn about the many other applications of personal umbrella coverage, speak with a qualified insurance broker.

 

Dependable insurance brokers in Nova Scotia
If you need affordable insurance in Nova Scotia, trust the experienced team at Eisenhauer Insurance. Contact us to obtain customized umbrella insurance, home insurance, car insurance, travellers insurance or other coverages in Halifax and Dartmouth, NS.

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