Extra protection for your assets
Your homeowners, renters or auto policy gives you liability protection, but only up to a certain amount. If you get sued or have a large claim against you, you might need more coverage to keep your assets safe. That's where umbrella insurance helps. It gives you extra protection, up to $3 million, so you can feel safe knowing your personal assets are not at risk.
Understanding umbrella insurance
An umbrella policy provides extra liability coverage above and beyond your home and auto insurance and protects you financially if you cause injury or damage to someone else's property.
Example:
A neighbor's child is playing with your kids and is attacked by your dog causing the child permanent scarring and disfigurement. Your neighbor sues you, resulting in a $800,000 verdict. You have homeowners liability limit of $300,000 and an umbrella policy of $1,000,000. Your home insurance company pays $300,000 minus your deductible, and the umbrella policy pays the remaining $700,000.
Without umbrella coverage, you would be responsible for the amount not covered by your homeowners policy — putting your other assets at risk including your home and investments.
Examples of liabilities typically covered under umbrella insurance include
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Bodily injury:
A neighbor's child is attacked by your dog, and the settlement exceeds your homeowners or renters policy limits.
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Property damage:
Your child causes damage to a neighbor's property, and the compensation awarded exceeds your standard policy limits.
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Landlord liability:
A tenant or guest gets injured on your rental property, and their medical expenses and other damages exceed your landlord policy's limits.
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Personal liability coverage:
Expenses arise from a defamation lawsuit against you.
