After a serious accident, the costs of injuries and damages can escalate beyond ordinary insurance coverage. This is where umbrella coverage kicks in. Understanding how umbrella policies function in Florida for personal injury cases can mean the difference between minimal recovery and full financial security.
What Is Umbrella Coverage?
Umbrella insurance is an extra liability coverage applicable to costs in excess of your existing policies, like auto or homeowners insurance. The idea is to protect the insured’s assets from large claims. If your auto policy covers $100,000 in liability and you’re liable for $300,000 in damages, the umbrella policy could cover the $200,000 difference.
Referring to Personal Injury Cases
Personal injuries often incur high medical expenses, great loss of income, and compensation for pain and suffering. Should damages be higher than the at-fault party’s insurance limit, umbrella coverage may pay additional funds. This helps ensure the injured party has a better chance of being compensated in full.
Common Cases of Usage for Umbrella Insurance
- Severe Car Accidents: It comes into play when medical bills and damages exceed the limits of auto insurance policies.
- Slip and Fall Injuries on Home Property: Highly pertinent if a guest is seriously injured on your property and his or her claims exceed the homeowners’ liability coverage.
- Defamation or Personal Liability Claims: Umbrella policies may cover claims excluded from standard policies.
The Importance of Umbrella Insurance to the Victims
It can be of consequence to the victims of injuries to know whether the tortfeasor bears umbrella insurance in negotiating settlements. If other sources of coverage are available, there will typically follow a progressive pool of funds for the long-term costs of care and financial recovery.
Umbrella insurance plays a major role in personal injury cases with heavy damages. The injured thereafter need a better understanding of umbrella policies in order to set realistic expectations during claim processes and proceedings. Professional legal support in serious injury cases will ensure that all sources of possible compensation are actively explored.
This post was written by Kelly-Ann Jenkins of Jenkins Law P.L. Kelly-Ann is an Insurance claims attorney St Petersburg FL. The information on this site is not intended to and does not offer legal advice, legal recommendations, or legal representation on any matter. Hiring an attorney is an important decision, which should not be based on advertising. You need to consult an attorney for legal advice regarding your situation.
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