Umbrella insurance is designed to cover any excess loss incurred that isn't covered under another policy, or in the event that your loss exceeds the limits of an existing policy. Personal umbrella policies are typically designated for homeowner's and automobile insurance, while commercial umbrella policies are often based on a commercial general liability (CGL) primary policy.
Examples of Umbrella Insurance Coverage
Arizona umbrella insurance covers a vast array of different types of loss, which is part of the reason why it has the name umbrella. However, the following provides some more concrete examples of what a typical umbrella policy might cover:
- Property damage
- Lawsuit expenses
- Liability (property and bodily injury)
Some additional damages not often covered by homeowners insurance or automobile insurance include:
- Slander: damaging spoken statement
- Libel: damaging written statement
- False arrest, detention, and/or imprisonment
- Mental and/or emotional distress
- Malicious prosecution
Since these instances aren't as common, and aren't typically threats to the average person, many policy-holders can forgo adding on an umbrella insurance policy. However, calculating your own risk will depend on factors like your location, occupation, type and amount of assets, limits on any existing policies, and other miscellaneous elements.
Crunching the Numbers
According to ISO, a Verisk Analytics company, the average auto liability claim for property damage was $3,231. In the same year, the average auto liability claim for bodily injury was $15,443. Adding a lawsuit on top of that could easily double the cost for the person found responsible. A trained and experienced professional from AZCAL Insurance Services can help you determine the appropriate coverage limits for your own policies, based on your personal needs and budget.
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