What is umbrella coverage?
Umbrella coverage can provide additional liability protection on top of your policies such as your home and auto. This additional coverage extends the limits of any underlying policies.
Do you have additional liabilities? Everyday things can put you at a higher risk, such as:
- Carpooling
- Newly Licensed Drivers
- Dogs/Pets
- Trampolines
- Pools
- Owning or using a boat, ATV or recreational vehicle
- Owning a Rental Property
- Distracted Driving
- Online bullying
Personal liability umbrella coverage can provide an additional layer of financial protection for liability claims in addition to your home and auto policies. This policy serves as a safety net for if a lawsuit or other unexpected legal issue exceeds your home, auto or other policy monetary coverage limits.
Also, if you travel internationally, umbrella policies can often provide more comprehensive coverage worldwide.
What is typically covered?
- Bodily injury
- Personal injury
- Property damage
- Landlord liability
What isn’t typically covered?
- Personal belongings- Umbrella insurance focuses on covering the cost of damages that you may cause to another person’s property, so it typically will not apply if you cause damage to your own property
- Business losses- This exclusion still typically applies for a home business
- Intentional or criminal acts or omissions
- Written or oral contracts
For Example:
If you are at fault for a car accident that injures a passenger in the other vehicle involved, your regular auto insurance may cover their resulting medical bills to the limit on your policy. But if that number is $150,000, what happens when their bills exceed that amount?
If you are unable to pay or are sued by that person, your personal assets could be at stake. Additional costs from recovery like loss of income could then come back to you.
A personal umbrella policy can provide assistance with those additional costs when your standard policy is not enough.
