About Umbrella Policies

Girl with umbrella

What is an umbrella policy?

An umbrella policy is a policy that provides additional liability coverage after your other insurance policies have hit their limits. Personal Umbrella Policies usually offer between one and five million dollars of liability coverage.

What does an umbrella policy cover?

These policies cover extra liability in the event of an accident after your initial coverage has been exhausted. For example, if you are liable for $1 million in a fire and your original policy covers $500,000 of liability, your umbrella policy covers the remaining $500,00, assuming your policy covers that type of incident at that amount. If your original policy covers the full amount, the umbrella policy isn’t used.

Why is it important?

Umbrella coverage is there for the unexpected. Your dog could bite someone, your teen could strike a motorcyclist with your car, a guest could slip and fall on a freshly mopped floor. You could be held liable to others for these damages. It only takes one serious lawsuit to put everything you own at risk.

For more information or to open your own umbrella policy, contact our partners at HomeServices Insurance.