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Fincash » Umbrella Insurance Policy

What is An Umbrella Insurance Policy?

Updated on January 23, 2022 , 53 views

An umbrella contract, also referred to as extra insurance, is a policy that tends to shield you from large and potentially devastating liability claims. It gives additional liability coverage to users who are at risk of being sued for damages to other people's property or body.

Umbrella Insurance Policy

Once you exhaust the limit of other insurance policies like car insurance, Home insurance, Life Insurance, etc., it comes into action to provide additional coverage.

Policy Inclusions and Exclusions

  • Policy inclusions tend to cover personal injuries, body injuries, property/asset damages, certain styles of lawsuits or legal proceedings, and Landlord liability.
  • Policy exclusions are liability caused due to war, business losses, intentional or criminal acts, damage to non-public belongings and contractual liabilities.

Who needs an umbrella insurance policy?

Anyone can purchase it. It helps to stop users from paying out an additional person's medical or legal bills when found accountable for it. So, it's helpful in covering expenses resulting from such situations.

Benefits of Umbrella Insurance Policy

  • Extremely progressive financial product offered by Insurance companies
  • It provides additional security coverage, which helps to extend your original claim limit
  • Situations like threats, dangers and unforeseen circumstances, which are generally not covered by any standard policy, are roofed by an umbrella contract
  • In case of any lawsuit, the duty of defending the client is upheld by insurance policy providers.
  • The drop-down coverage of umbrella insurance policy fills the gap in coverage that might exist in the primary liability insurance policy.

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How does it work?

Let's take an umbrella insurance policy example. Suppose your pet runs out of the house and attacks a neighbour kid who was playing. Kid's parents sue you to cover medical bills. During this situation, umbrella insurance comes into action. The policy covers claims not just for policyholders but also for other members of the family. The coverage is above and beyond the holder. It's quite cheap in comparison to other types of insurance.

Documents Required

Settling the claim for an umbrella insurance policy is one of the simplest and hassle-free processes. You must make sure that you provide necessary, valid documents, which should be duly stamped/filed together with your claim’s form. When it comes to claiming the umbrella insurance policy, you will require the following documents:

  • Duly filled claim form
  • Insurance Policy documents
  • FIR (if applicable)
  • Details of damaged property

For more details on the claim process, you can seek help from your insurance provider.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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