Most people feel pretty confident that their insurance will cover them fully in the event of an
accident. However, depending on the circumstances, it is in fact possible to be sued for more
than your liability insurance covers. The legalities differ from state to state but in Tulsa, OK for
example, you can be held responsible for damages above and beyond what insurance covers. If
you have a lot of assets to protect, extra insurance in the form of an umbrella policy might be a
good investment.
Umbrella insurance or “excess liability coverage,” will kick in after your policy limit has been
exhausted in the event of a major accident with high ticket damages. Most policies start at $1
million dollars and go up from there. Most people will settle an insurance claim out of court but
under the right circumstances a legal battle could result in a large judgement against you. If the
unthinkable happens, it’s best to have coverage in place, especially if you have a lot to lose.
Umbrella coverage also covers you for some things that regular insurance does not like libel,
slander and recreational vehicles.
Who Needs An Umbrella Insurance Policy?
If you have a lot of money in savings, own a lot of property, own a business, are involved in a
sport or hobby that could cause injury to others or own things that could potentially be dangerous
like a swimming pool, large dogs or a trampoline, then you might benefit from this added
protection. An umbrella policy also covers you worldwide so if you do a lot of travel this is also
something to keep in mind.
What An Umbrella Policy Does and Does Not Cover:
A basic umbrella insurance policy will usually cover such things as additional injury or damages
to the victim, funeral costs for the victim, slander or libel lawsuits against you, your own legal
defense costs and injuries to your tenant if you are a landlord.
Remember this is liability coverage, so your own injuries as a result of the same accident are not
covered under this policy (but may be covered under another type of policy you own). You will
also not be covered for any accidents caused by intentional or criminal acts. Some vehicles might
be excluded and any accident resulting from the use of these vehicles would not be covered.