How Does a Personal Injury Umbrella Policy Work?
When you are looking at insurance plans and considering which provider to use and how much coverage to purchase, you may come across the term umbrella policy. Umbrella policies are not required and are an add-on to the policy you choose. Because many people are unfamiliar with what an umbrella policy is and what it is used for, they often decide not to include it in their coverage.
When it comes to playing it safe and covering your basics, understanding the appropriate amount of insurance is important. After an Arizona car accident that was your fault, the party you hit may decide to file an Arizona car accident claim against you. This could mean a variety of things, one being that you may be looking at a large bill if your coverage isn’t sufficient to cover the settlement amount.
What is an Umbrella Policy and What Does It Do?
An umbrella policy is an extra coverage over and beyond the coverage of your normal policy. It covers such damages including:
- Bodily injury
- Personal injury
- Property damage
- Landlord liability
What it doesn’t cover are damages like business losses, the loss of personal, or contracts. You may be wondering why you would need extra coverage on top of your existing insurance policy. It is true, you don’t have to add the extra coverage and you could be fine without it. However, accidents happen all of the time. There were 127,056 Arizona car accidents in 2018 alone.
If you hit another car and the accident you caused resulted in property damages and injuries to the other driver or car occupants your insurance policy would be the place the other party would connect with to have the costs associated with their damages covered. Every policy has its limits. Your policy will only cover the costs up to a specified amount. If the costs exceed your policy’s limits, it will be up to you to come up with the additional funds. Depending on how much you owe, you could end up exhausting your savings, having to sell your home, or having your wages garnered.
If you have an umbrella policy, those extra costs that your insurance policy doesn’t cover would be taken care of. Your umbrella policy would take effect and help pay for these costs so that you wouldn’t have to find a way to pay for them yourself. Life comes risks so when you are looking at insurance, understanding the various options you have to protect yourself is important.
Do You Need an Arizona Car Accident Attorney?
The Arizona automobile accident attorneys at ELG will fight on your behalf when you have been in an accident so that you can obtain a fair and full settlement for your damages. To maximize the amount of compensation you receive after your accident, having an experienced Phoenix serious injury attorney helping you with your case will improve your chances significantly. Call the Phoenix personal injury attorneys at ELG today at (623) 877-3600 to schedule your free consultation.