What is Umbrella Insurance?
Personal umbrella insurance is insurance designed to add extra liability coverage over another insurance policy, like auto or homeowners insurance. This protection tends to kick in when the liability limits on these other policies has been exhausted.
What does umbrella insurance typically cover?
You may already have auto and homeowners insurance that covers some of these situations, but umbrella insurance goes above and beyond the limits of those policies and covers some situations that aren’t covered by them, similar to, but not exactly like Renters Insurance.
Here are specific examples of the types of coverage provided by an umbrella policy:
Bodily Injury Liability – covers the cost of damages to another person’s body such as the cost of medical bills and/or liability claims as a result of:
- Someone getting hurt in a serious auto accident where you are at fault
- A guest getting hurt in your home due to a fall
- Someone else’s child getting hurt while playing in your yard
Property Damage Liability – covers the cost of damage or loss to someone else’s personal property such as:
- Damage to vehicles and other items due to an auto accident where you are at fault
- Accidental damage to school property caused by your child
Owners of Rental Units – helps protect against liability that you may face as a landlord like someone tripping over a crack in the driveway and suing you for damages
Coverage is also provided if you’re sued for:
- Slander – saying damaging statement
- Libel – writing/publishing damaging statement
- False arrest, detention, or imprisonment
- Malicious prosecution
- Shock/mental anguish
- Other personal liability situations
What does umbrella insurance typically not cover?
Your personal property.
Umbrella insurance is designed to help cover expenses if you are held responsible for damages to someone else’s property.
This exclusion applies even if your business is home-based. For example, if you run a day care in your home, any liabilities that result that would likely not be covered.
Other business-related liabilities like a malpractice lawsuit would not be covered as well.
Criminal or intentional actions.
An Umbrella policy usually won’t protect you from the consequences of your own intentionally harmful or illegal behavior.
Personal umbrella insurance typically won’t protect you from any liability from an oral or written contract you’ve entered.
If you have any questions about personal umbrella policies, you can contact us at 774-992-0789 or email email@example.com.
Here’s an example situation
You’re at fault in a car accident and injure another driver. Your regular auto insurance covers the other driver up to $200,000. But what if that limit is not enough to cover full cost of their medical bills?
You could be legally responsible for the damages beyond the $200,000 your auto insurance covers. And, if the other driver sues you, your personal assets could be at risk. An umbrella policy could provide the additional coverage you need so you aren’t stuck trying to pay the remaining balance yourself.
Here at Lantz Family Insurance Agency we are committed to providing our clients with quality insurance and superior customer service – including when disaster strikes. Should the need arise to file a claim, we’re ready to assist you in any way we can. Call us for a FREE, No Obligation Quote at 774-992-0789 or email firstname.lastname@example.org.
Peter C. Lantz (Pete) has been a Licensed Insurance Agent in Massachusetts for more than 10 years. He has worked for Arbor Insurance Brokerage, Inc. and USA Wealth Group, Inc. as an Insurance Broker and Financial Advisor. Pete has served in the United States Marine Corps Reserve. Pete has his Real Estate Brokers’ License, as well as Life and Health Insurance Licenses.