Umbrella Insurance

What Is Umbrella Insurance?

Umbrella insurance acts as an additional layer of liability coverage, providing peace of mind when your primary policy limits are exceeded.

Whether it’s legal fees or medical costs, this policy helps shield you from significant financial burdens by augmenting your existing insurance in the event of a lawsuit or liability claim. It’s designed to keep you secure and financially stable during life’s unexpected events.

How Does Umbrella Insurance Work?

Umbrella insurance activates once your primary insurance limits have been exhausted.

For example, if your auto insurance carries a liability limit of $250,000 and you are found liable for $600,000 in damages to another person’s property, your umbrella policy can help cover the remaining balance up to the limits of your umbrella policy. This additional layer of protection ensures you have financial security in challenging circumstances.

Umbrella insurance policies generally extend coverage to you and other members of your household.

Here’s a breakdown of what umbrella insurance typically includes and excludes:

Commonly Covered by Umbrella Insurance

• Additional liability protection for your home, auto, RV, or boat insurance policies.
• Injuries that you may unintentionally cause.
• Liability incidents that occur outside the United States.
• Property damage that you cause
• Legal defense costs related to slander or defamation claims.

Commonly Not Covered by Umbrella Insurance

• Business-related liabilities.
• Any intentional damage you cause.
• Punitive damages awarded to a plaintiff.
• Liability arising from recreational activities.
• Pollution or environmental damages.