When you acquire umbrella insurance, it’s crucial to understand what it covers, especially when you have financial obligations following a court case. Umbrella insurance covers defense, court, and judgment costs. More details on these are provided below.
Defense Costs
Defense costs refer to the expenses incurred for legal representation during the case. These costs can include the hours spent working and researching, any additional fees for the lawyer, and the cost of filing and copying legal paperwork. Fees for private investigators are also included in this part of the bill.
Court Costs
Court costs include the fees associated with the court for the day of the case and any previous visits leading up to the court’s decision. Transcript and reporter fees are also included, which can vary depending on the length of the court session and the number of copies required.
Judgments
Compared to defense and court costs, the judgment costs you pay are usually much higher when you need umbrella insurance. These costs include the reimbursement for any property damage. The overall judgment cost will also cover any medical expenses related to the case. In some instances, there could be a payment for lost income and any other costs due to the winning party.
Given the potential variability in these costs, umbrella insurance is essential to prevent you from having to sell off your assets to cover expenses, which could disrupt your life.
If you’re in the surrounding areas of Pinellas County, get a personal quote on umbrella insurance today. Our team at Percheron Insurance Group is here to help with any questions or concerns you may have and get your policy started today.
