What to Know About Umbrella Insurance

What to Know About Umbrella Insurance

Things to know when considering umbrella insurance

Umbrella insurance is a helpful tool should you get into an unfortunate accident or situation. Umbrella insurance kicks in once you have reached the liability limits of your auto, home or other policies. It can be a lifesaver in that way. Here is what you need to know.

What Umbrella Insurance Covers

While policies vary slightly, here is what umbrella insurance most often covers and does not cover:

  • Injuries to another person

  • Landlord liability

  • False imprisonment

  • Damage to another person’s property

  • Defamation

  • Legal fees associated with getting sued

What Umbrella Insurance Doesn’t Cover

  • Personal injuries

  • Damage to your possessions

  • Criminal acts

  • Damage to your business

How Umbrella Insurance Works

Let’s say you have a party at your home one night. One of the guests slips and falls and injures themselves badly. They then sue you for the cost of their medical bills, which exceeds your homeowners’ coverage. If you have umbrella insurance, that would kick in and yuo wouldn’t have to cover the difference out of pocket.

Do You Need It?

Umbrella insurance isn’t necessary for everyone. However, there are some cases in which it might be helpful.

  • If you own a pool or something that can lead to injuries

  • If you have a high amount of savings and/or assets

  • If you own property or are a landlord

Do One Thing: Consider your needs before signing up for umbrella insurance. Many times it’s not necessary.

Chris O'Shea

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