Liability issues are everywhere and you never know what could cause someone to present you with a lawsuit. Most liability coverage that can be found within your current insurance policies only covers bodily injury and property damage to others, leaving you open to a multitude of other liability concerns. Additionally, every insurance policy is different, so what is considered a covered liability issue under one insurance line may not be covered on another insurance line. Umbrella insurance is there to provide coverage to where your other policies’ liability may not extend.
What is Umbrella Insurance?
Basically, umbrella insurance policies protect you from liability issues that go beyond the liability limits of standard insurance policies, such as your homeowner’s insurance, car insurance, etc. This policy literally puts you under its umbrella so that when you exceed the liability coverage limits on an insurance line, you will still be protected.
What Does Umbrella Insurance Cover?
Most liability coverage that rests within your current insurance policies only covers bodily injury and property damage to others. Umbrella policies will extend those limits to not only provide additional coverage for bodily injury and property damage, but also to cover things that are not listed under regular liability allowances. Umbrella Insurance kicks in when these situations present themselves and/or you exceed the amount of liability coverage for the events that are already allowed under your regular insurance policies.