Personal Umbrella Insurance
Personal umbrella insurance is like backup insurance for when your coverage on traditional policies runs out. It can help protect you from large and potentially devastating liability claims or judgments.
What is covered by a personal umbrella policy
Umbrella insurance can benefit almost anyone. Accidents that result in high costs can happen to anybody. This type of policy can help prevent you from paying out of pocket for another person’s medical or legal bills, property damage to another’s property, and a few other circumstances if you’re found responsible—up to your policy’s limit. Bodily injury, personal injury, property damage, and landlord liability are usually covered under a traditional umbrella policy.
Umbrella insurance also typically extends to other members of your household, such as your spouse, children, and other relatives who live in your home and who do not have auto or property insurance.
What isn’t covered
Umbrella insurance is kind of tricky to understand, so we’ll break down what isn’t usually covered under this type of policy.
- Personal Property
While personal umbrella insurance helps cover expenses if you’re held responsible for damages to someone else’s property, damage you cause to your own property won’t be covered, even if it is accidental.
- Business Losses
Losses related to the operation of your business or damage to your business property wouldn’t be covered. This applies even if the business is home-based.
- Criminal or Intentional Actions
A personal umbrella policy won’t protect you from the consequences of your own intentionally harmful or illegal behavior—for example, restitution you owe if you’re convicted of a crime or damage you intended to cause.
- Contracts
You won’t be protected from any liability connected to an oral or written contract you’ve entered. If you find yourself facing a lawsuit from someone you’ve hired to work on your home, for example, umbrella insurance wouldn’t provide protection.
If you’re interested in a personal umbrella policy or want to know more about how it could benefit you, call us today!
