For Landlords: Three Reasons You Need Umbrella Coverage

Your property is your livelihood. Protecting your assets from lawsuits is your number one priority. One nefarious tenant on a mission, one accident, or even an argument can escalate into a claim that could ultimately threaten your property. Liability insurance in Sandy, UT only goes so far in this matter. Once it has reached its limit, there is an additional option that can help to secure your properties, umbrella coverage.

Umbrella Coverage – The Rundown

Umbrella coverage goes over and above what liability insurance covers. Imagine for a moment that a tenant fell off of the balcony of your apartment due to the faulty railing. The court awards the tenant two million dollars, but your liability coverage only covers one million of the judgment amount. Umbrella coverage picks up the rest of the balance owed. It protects you and your property. Listed below are three reasons you need umbrella coverage:

  1. In today’s society, litigiousness is all the rage. "Free stuff" or just the thrill of getting over on someone is a ripe reason for a bad actor to find a reason to sue you. 
  2. Recently, a perceived duty of landlords to protect their tenants from crime in common areas has emerged. This increases your liability and exposes you to a lawsuit for events out of your control. Given the outrageous amounts, being awarded in some of these cases, sometimes in the millions of dollars, umbrella coverage can help you avoid a disaster if you ever find yourself in this predicament.
  3. Other areas where you can get into trouble, where umbrella coverage would truly benefit you, include animal bites, tenants who harm other tenants in some way, and even the possibility of being accused of slander or libel, as these cases are also on the rise. Discrimination and invasion of privacy claims are rising as well. 

Now that you understand what umbrella coverage is, are you ready to ensure that you have all of your bases covered? Reach out to Wasatch Preferred. We have a policy that will suit your needs. Serving the Sandy, UT community with passion and integrity since 2009.