Understanding the different types of liability coverage can be confusing, but it’s crucial to know how they work to protect you. Many people assume their homeowners or auto insurance policies provide enough coverage, but that’s not always the case. At Ottawa Insurance Agency in Zeeland, MI, we help our clients navigate the differences between personal liability insurance and umbrella insurance so they can make informed decisions about their protection.
What Does Personal Liability Insurance Cover?
Personal liability insurance is a standard part of most homeowners and renters insurance policies. It helps pay for legal expenses, medical bills, and property damage if you’re found responsible for an accident.
For example, if a visitor is injured on your property and decides to sue, your liability coverage can help with attorney fees, medical costs, and settlement expenses. Similarly, personal liability insurance can help cover repairs or replacements if you accidentally damage someone else’s property.
How Is Umbrella Insurance Different?
Umbrella insurance is designed to provide extra coverage beyond the limits of your existing personal liability insurance. If an accident or lawsuit costs exceed what your homeowners or auto insurance covers, an umbrella policy helps bridge the gap.
Imagine you’re involved in a serious accident where medical bills and damages surpass the limits of your auto insurance. Without umbrella coverage, you’d be responsible for paying the remaining balance out of pocket. An umbrella policy steps in to cover those excess costs, potentially saving you from significant financial hardship. It can also protect against lawsuits related to libel, slander, and other personal liability risks that standard policies may not cover.
When purchasing an umbrella insurance policy, contact Ottawa Insurance Agency, serving the greater Zeeland, MI, area.
