Understanding the Importance of Umbrella Insurance for Rental Property
If you own rental property in Birmingham, MI, you may be wondering if you have enough insurance protection. You may also be considering if you need umbrella insurance, just in case. If you have questions or concerns about whether you have the right insurance and enough coverage to protect the residence, the agents at High Favor Insurance are ready to answer any questions you may have.
What is Umbrella Insurance?
When you’ve invested in a property that you plan to use as a rental property, that can be a strategic decision for financial security. But, if you do not have enough coverage, you may find yourself in financial straits due to unexpected costs.
Think of umbrella insurance as added protection, hence its name "umbrella". A policy for umbrella insurance provides the extra coverage you need as a rental property owner. Coverage is applicable whether you have one rental property or several.
How Umbrella Insurance Works
With your standard insurance policy, it has limits to what it covers. An umbrella policy adds a layer of personal liability coverage. In the event an issue occurs with the rental property that exceeds the limits of your standard coverage, umbrella insurance steps in and covers the costs.
Umbrella Insurance Covers:
- Bodily injury – the policy covers the medical bills if an injury occurs on the rental property.
- Defense costs – if sued due to an incident involving your rental property, the policy covers the legal fees to hire a defense lawyer.
- Judgements – if you lose a lawsuit, umbrella insurance covers the payment(s).
- Lawsuits – costs are covered for lawsuits.
Contact High Favor Insurance
If you want coverage for your Birmingham, MI rental property that protects your assets once your primary insurance limits are reached, call us High Favor Insurance or fill out our form for a quote.
