Protection against a claim that exceeds certain insurance coverages.
Umbrella insurance is a type of personal liability insurance that can be indispensable when you find yourself liable for a claim larger than your homeowner's insurance or auto insurance will cover. If you own a boat, umbrella insurance will also pick up where your watercraft's liability insurance leaves off.
Umbrella insurance even covers certain liability claims those policies may not, such as libel, slander, and false imprisonment. And if you own rental property, umbrella insurance provides liability coverage beyond what your renter's policy covers.
Coverage examples include:
- Bodily injury liability
- Property damage liability
- Owners of rental units
- Coverage is also provided if you're sued for:
- False arrest, detention, or imprisonment
- Malicious prosecution
- Shock/mental anguish
What is not covered?
An umbrella policy generally does not provide coverage for:
- Your injuries or damage to your personal property
- A criminal or intentional action causing damage to someone else
- Liability you assume under a contract
Is it worth having an umbrella policy?
- Umbrella insurance is worth it if the value of your assets exceeds your auto or home liability insurance limits.
- Umbrella policies are relatively inexpensive so they are worth the investment if you have significant assets you're looking to protect from costly liability claims