What Is Umbrella Insurance?

Umbrella Insurance

Umbrella policies are also called excess liability policies. Our personal umbrella policies are here to protect you from liability. It extends the limits of your auto, home, or boat policies to provide extra liability protection. Personal umbrella policies also cover your defense costs and lawyer fees in the event you get named in a lawsuit.

Why get umbrella insurance?

In the case that you lose a lawsuit for a sum greater than your coverage will pay, you could potentially lose your savings, assets, or retirement. The policy covers all members of the insured’s family or household. This coverage also applies to claims for libel, slander, and false imprisonment, which are not covered by some basic liability policies. If you have rental property, umbrella coverage can cover beyond your renter’s insurance. You are also covered worldwide: the damage does not have to happen on your property.

Who needs umbrella coverage?

The people most likely to need umbrella coverage are those who engage in activities that put you at risk of being sued for liability. Some risk factors include owning property, renting property, employing household staff, having a trampoline or hot tub, hosting large parties, and being a public figure. Having a teenager, a dog, or a pool can also put you at greater risk of being sued. The more likely you are to be sued, the greater chance you need umbrella insurance.

How does umbrella coverage work?

Once your basic liability policy reaches its maximum, the personal umbrella coverage kicks in. You are responsible for expenses exceeding the limits of your personal umbrella coverage.

What’s covered under umbrella insurance?

Legal defense fees
Attorney fees
Monetary judgments/settlements
Medical bills, including therapies
Lost wages for the injured
International Coverage

What’s not covered by umbrella insurance?

Personal umbrella policies are intended to extend your liability coverage. They do not cover injures to the insured but would cover bodily injury or property damage to others. Umbrella covers accidents and unintentional damage. It does not cover harm or injury to someone if it was intentional. Umbrella policies are for personal coverage, not for accidents tied to a business. If you are a business owner, acquire a liability policy specifically for your business, such as Directors and Officers Insurance, Employment Practices Liability Insurance, General Liability Insurance, or Professional Liability Insurance.

For all of your questions about property and casualty insurance, you can always reach out to the experts at Redwood Agency Group.