Umbrella Insurance — What It Is & What It Isn't
A personal umbrella insurance policy can provide additional affordable coverage if you reach the liability limits on your other personal insurance policies such as your homeowners or vehicle insurance.
What’s covered
- Others’ injuries
- Others’ property damages
- Liability claims such as libel, slander and false imprisonment
- Your legal defense
What isn’t covered
- Damage to your personal property
- Your own injuries
- Intentional or criminal acts
- Liability you assume under a contract
Example
You’re found to be at fault in a car accident. Between car repairs, hospital bills and lost wages, the owner of the other car is awarded $600,000 in damages. Your auto liability policy maxes out at $300,000, which means you have to come up with the other $300,000. An umbrella policy would help cover that.