What Is Not Covered Under an Umbrella Insurance Policy? The perfect storm shield? Dive into the hidden depths of what it doesn’t cover before relying on it for rain-proof protection.
Learn about excluded risks, features, and benefits to see if it’s the right fit for you.
What Umbrella Insurance Covers
- Bodily injury and property damage caused by you or someone covered under your policy (except for intentional acts)
- Legal defense costs if you’re sued
- Personal liability claims arising from your residence, vacation property, or rented property
- Certain reputational harm claims, such as libel or slander.
Features of Umbrella Insurance Policies
- High liability limits: Umbrella policies typically offer much higher liability limits than your underlying policies, often ranging from $1 million to $10 million or more.
- Affordable premiums: Compared to the potential financial protection it provides, umbrella insurance is relatively inexpensive. Premiums are usually based on your underlying insurance limits, lifestyle factors, and claims history.
- Flexibility: You can customize your umbrella policy to cover specific risks that might be relevant to your situation.
What Is Not Covered Under An Umbrella Insurance Policy? Benefits of Umbrella Insurance
- Peace of mind: Knowing you have extra protection against catastrophic liability claims can provide significant peace of mind.
- Financial protection: Umbrella insurance shields your assets from potentially being wiped out by a large lawsuit.
- Broad coverage: Umbrella policies offer a wider range of coverage compared to your underlying policies.