Navigating Liability Coverage and Insurance Policy Claims

When facing issues with insurance coverage, particularly related to liability, it is important to understand the details of your policies and the steps you can take to address these concerns. This article aims to guide you through the process of understanding and navigating issues with house insurance and umbrella insurance policies.

Understanding Your Insurance Policies

If you recently discovered that your personal liability coverage was not high enough on your house insurance and that your umbrella insurance does not provide the necessary coverage, you might be wondering what your legal options are. When signing up for insurance policies, it is crucial to understand the terms and requirements involved.

Need for Liability Coverage

Most insurance companies have requirements for the minimum liability coverage that should be maintained on auto and homeowners policies to support umbrella policies. Underlying insurance policies, such as homeowners insurance, typically have limits on liability coverage that must be met to activate an umbrella policy.

Reviewing Your Policy

It is essential to review your insurance policies to determine if your underlying liability coverage is sufficient. If your homeowners liability limit was inadequate to support an umbrella policy, the insurance company may have notified you before a claim was made. If not, investigate whether such a notice was provided.

Steps If Your Umbrella Policy Does Not Work

The fact that your umbrella policy does not work could be due to various reasons. Here are the steps you can take:

Check the specific terms of your umbrella policy to understand the conditions under which it would be activated. Check if your homeowners liability limit was adequate at the time of your umbrella policy's purchase. Review the application you signed when setting up your insurance policies. It likely stated that you understood the terms and minimum requirements for the policies. Assess whether the insurance company failed to inform you about the inadequacy of your homeowners liability limit before a claim was made.

While you can always sue, the key questions you need to address include:

What damages did you suffer from the undercoverage? Was there a liability claim that exceeded your home liability limits? Did the company notify you that your homeowners liability limit was inadequate?

Seeking Legal Advice

To effectively address these issues, it is crucial to consult with an insurance-savvy legal firm. Bring all relevant documents and policies to ensure you have a thorough understanding of your case.

If you decide to pursue legal action, you should also consider the following:

You may be entitled to a refund of all the premium payments you made on the umbrella coverage, as the insurance company could not provide coverage beyond what was specified in the policy. Communicate with the insurance company or agent to request a refund of the premiums paid for the umbrella coverage. If the company does not refund the premiums, you can file a complaint with your state’s insurance department.

Conclusion

Facing issues with insurance coverage can be frustrating, but taking the right steps can help you navigate these challenges effectively. Understand the terms of your policies, review the application you signed, and seek legal advice to determine your best course of action.