Umbrella insurance is extra insurance that provides protection beyond the limits of coverage from existing policies. Without this coverage, assets such as your vehicles, homes, and future earnings may be at risk. Unlike other insurance policies it provides coverage for injuries, property damage, certain lawsuits, and personal liability situations. The amount of umbrella coverage you need depends on your personal financial situation, the assets you have, and your level of risk. The umbrella policy coverage starts once the liability limits on your existing policies are exhausted.
Umbrella Insurance covers:
- Bodily injury: This coverage helps pay medical bills, for example, if your guest is injured at a party at your house.
- Legal fees: if you are sued
- Property Damage: Umbrella Insurance helps pay the repair costs if you damage another person's property. It will also cover rental equipment, like if you crash a rented Jet Ski into the dock, or if your son accidentally damages school property.
- Rental Property: Umbrella insurance can give you extra coverage from liability you have as a landlord, if you own a rental property. For example, if someone breaks their ankle on the steps of your rental property and sues you, this policy will the expenses.
Umbrella Insurance does not cover:
- Damage to personal property
- Intentionally harming someone
- Water damage
- Business Incidents
- War related expenses