Umbrella Insurance

With all of the obstacles life gives us today; it’s hard not knowing what will happen in the next 2 days, week, and year. Protecting you assets and family is a top priority, which is why people have insurance. With all of the different types of insurance there are, Umbrella Insurance is designed to add extra liability coverage cover and above another insurance policy. Umbrella insurance covers things such as homeowners or auto insurance policy.

Here’s an example of when Umbrella Insurance comes into hand: If you get into a car accident that injures the other driver, the regular insurance you have may cover the other driver up to the limit you selected. Let’s say that number is $250,000. But what happens if that limit is not enough to cover the other driver’s medical bills? If his injuries are severe then you may be responsible beyond the $250,000 you car insurance policy covers. That’s when the Umbrella Insurance policy comes to hand. An umbrella policy can help pay for the additional coverage you need. But there are still some things that the Umbrella Policy does not cover. Those are:

  • Your personal Property
    • The umbrella policy helps pay for the expenses that you are held responsible for damages to someone else’s property.
    • Example: Let’s say you live in a 4 story apartment and live on the very top floor. If your bathtub overflows and affects some of your apartment, umbrella insurance will not help cover those costs, but if it leaks and affects some of the people living under you. If some of their property is affected, umbrella insurance can help cover those costs.
  • Business Losses
    • Losses that are related to the operation of your business or damage to your business property would not be covered by the Umbrella Insurance Policy.
  • Criminal or Intentional Actions
    • If you are convicted of a crime or damages you intended to cause through your actions; the Umbrella Insurance Policy will not help cover those cost.

The umbrella Insurance policy is there when you need to pay for additional cost for someone’s personally property. This insurance will not work for personal use. It is made to help pay for additional cost for someone else’s property.

In most cases, personal umbrella policies are available in million dollar increments, from $1 to 5 million. While an umbrella policy is not required, it may offer increased protection in the unfortunate event of an accident.

Ask your agent if an additional liability coverage make sense in your particular case.


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