TheCakeIsALie
kiwifarms.net
- Joined
- Jun 15, 2016
I don't think so.
Umbrella insurance (also known as Excess Liability), is used to raise the total aggregate insurance on a build - at least in construction. So if your General Liability has an aggregate coverage of $2 million (which means max payout amount is $2 mil), and you have an umbrella policy worth $3 million, your total project insurance aggregate is now $5 million. So if anything goes amiss, your extra insurance kicks in and raises your general liability total.
So if she needs umbrella insurance, something must be making the bank nervous about the general liability policy she agreed to take out, and they've stipulated that she must raise the aggregate coverage with an umbrella policy.
Umbrella policies are good for injuries and damage to posessions. For example, if I'm found liable for damage that exceeds what my homeowners will pay, an umbrella policy will pay to cover the excess.
For example, if I have a dog and it escapes and causes major damage to some else through an attack, bite etc...umbrella will cover what the homeowners policy wont.
Another example is you cause a several car pileup and your auto insurance isnt enough to pay for the damages.
Umbrella policies are cheap, homeowners should have it.
Last edited: