Umbrella Insurance

What is umbrella insurance?

An umbrella insurance policy provides extra liability insurance for the insured’s home, auto, watercraft, and business. If the cost of a claim exceeds the limits of the insured’s underlying primary insurance policies, umbrella insurance extends liability coverage. Without it, you could be obligated to pay out of pocket for legal fees, medical bills, and damage.

Do I need umbrella insurance?

Those who should consider purchasing a policy are property owners that own dangerous things that can cause injury such as pools, trampolines, dogs, and etc. It might also be a good idea if you’re a landlord, a coach, or participate in dangerous sports in which you could injure others. 

Business owners should seriously consider a policy to protect against injuries that occur on their property or advertising mistakes.


How does it work?

Most insurance policies cover what’s in their name — homeowners policy covers your house, auto your vehicle, and so on. Those policies will cover the liability of those items. However, umbrella insurance covers most everything. So, if you ever max the liability limits on any of your other insurance policies, your umbrella policy kicks in to cover the rest.

What does it cover?

An umbrella policy will cover liability costs in the following cases:

Bodily injury — If someone injures themselves on your property, you injure someone in a car accident, or someone gets hurt in a boating accident you caused, your umbrella policy coverage will handle whatever bills you accrue beyond what your specific policy covers. These, and the following, are just examples, so be sure to ask questions when purchasing an umbrella policy to be sure you have proper coverage.

Property damage — Example: if you cause more property damage in a car accident than what your auto policy covers, your umbrella policy picks up the excess.

Lawsuits — An umbrella policy protects you if you’re sued for libel, slander, false arrest, malicious prosecution, and many other civil charges.

Legal fees — Umbrella policies cover your legal fees and court costs if you are sued.

What doesn’t it cover? Malpractice, workers compensation claims, damage caused by your business or business-related activity, or intentional damage or bodily harm.
Also, it only protects your liability and legal costs when you are sued. If you get hurt or are suing someone, your umbrella policy does not help you.