What is umbrella insurance?
Keeping the people you love safe and secure is important, which is why it’s crucial to have dependable insurance in place from a company you can rely on. Personal umbrella insurance is protection you can buy that offers additional liability coverage on top of another insurance policy you have in place, like home or auto.1
Adding umbrella insurance is often a lot more affordable than people realize. As your insurance experts, we recommend comparing quotes online or calling a licensed insurance agent to see if umbrella coverage is a smart choice for your situation. For some people, it might make sense financially to have one.
What does umbrella insurance cover?
Personal umbrella insurance can be added to an underlying home or auto policy and include additional protection for bodily & personal injury, property damage and landlord liability. Since no one can predict when an accident will happen, or how much damages someone could incur from one, umbrella insurance can be beneficial whether you rent or own your home.
If you or another member of your household were to be in a potentially devastating situation like a car accident, personal umbrella insurance could help protect you from additional damages incurred, like the other driver’s legal or medical bills, up to your policy’s limit.
Or, if your teenage son or daughter is sued by someone for posting libelous content online, umbrella insurance could help you pay for additional damages.1
What is not covered by umbrella insurance?
Umbrella insurance can help you pay for damages you or your household members cause to other people’s property. However, it’s important to understand what it does not offer protection from:
If your toilet overflows and ruins the baseboards and drywall in your bathroom, the damages caused would likely be excluded from coverage. However, if your downstairs neighbor had property damages from the overflow, a personal umbrella policy could help you pay if any negligence on your end is found. Remember though, umbrella benefits only kick in after the limits of an underlying policy have been exhausted.1
Business-related liabilities, such as a malpractice lawsuit, would typically be excluded by a personal umbrella policy, even if your business is based out of your home. Losses in relation to your business operation, or damages to work equipment, would also probably not be covered by personal umbrella.
Contracts & Criminal Acts
Of course, if you are convicted of any illegal or harmful behavior, your umbrella insurance probably won’t cover the consequences. This also holds true for contracts, oral or written, which you’ve entered into. So, if you come into a situation where a person you hired to landscape your backyard sues you, a personal umbrella policy would probably not offer any protection.1
Is umbrella insurance expensive?
The price can fluctuate based on the amount of underlying insurance you have and the type of risk you represent. Generally, the greater the amount of underlying liability coverage you have, the less expensive an umbrella insurance policy can be. Sometimes, excess liability or umbrella insurance can offer a broader range of coverage than standard policies can, such as protection against libel or slander.2
Who is Answer Financial?
The ins and outs of insurance can be a little daunting, which is why we’re here to help. The licensed insurance experts at Answer Financial are standing by to help you buy, compare and save on all types of personal insurance, from basic auto and home to coverage you may be less familiar with like renters, umbrella, motorcycle and more.
When’s the last time you compared rates to see if you could be saving more with another insurer? We work with all types of insurance carriers – from household names to regional brands – to find you the right rates and discounts for your individual needs.
You can compare quotes from top-rated insurance companies in minutes on our mobile-friendly website. And, if you come into any questions along the way, you can give us a call for guidance. Our agents can help you complete your purchase, regardless of which insurer you select from our comparative rating platform.
November 12, 2020
- 1."Umbrella Insurance: What It Is & What It Covers,” Allstate, https://www.allstate.com/tr/personal-umbrella-policy/whats-umbrella-insurance.aspx
- 2."What is an umbrella liability policy?” III, https://www.iii.org/article/what-umbrella-liability