Umbrella insurance in Milford, CT, can provide an extra layer of protection for your assets during costly liability lawsuits. It helps ensure you don’t face overwhelming debt or have to sell your assets to cover expenses.
Common Coverage
Umbrella insurance policies typically cover legal defense costs and may pay for judgments against you, up to the coverage limit. The specific limit varies depending on your policy. A professional at White Oak Insurance LLC can help you understand your coverage and determine the right policy for your needs.
Exclusions for Malicious Acts
While umbrella policies often cover settlement amounts, there are exclusions to be aware of. Many insurance companies deny claims involving malicious intent. For example, in defamation cases, if you make a statement with the intent to harm someone’s reputation, your policy may not cover the costs. Similarly, liability lawsuits stemming from violent acts are often excluded from coverage.
Defamation Lawsuits
Some insurance companies explicitly exclude defamation lawsuits from umbrella policies. This is because determining whether a person acted maliciously can be subjective, leading to disputes between the policyholder and the insurer. Always read the fine print of your policy to understand what is and isn’t covered.
Secondary Insurance Role
Umbrella insurance often acts as secondary coverage. For instance, if someone sues you for an accident on your property, your home insurance policy will pay its portion first. The umbrella policy will then cover any remaining costs that exceed your home insurance coverage limits.
If you find umbrella insurance confusing, the experienced agents at White Oak Insurance LLC are here to help. Contact us today to learn more! We’re currently serving the Milford, CT, area.
