We answer your questions about umbrella insurance!
When it rains, it pours. When it starts down pouring, it’s time to rely on your trusty umbrella. The same is applicable to when you exceed your liability insurance limits. When you need additional liability coverage for your auto, home, and watercraft policies, an umbrella policy is there for you.
This is where umbrella insurance can ‘cover’ you from the financial strain that comes along with a lengthy and expensive lawsuit or medical bills. If can’t wrap your head around umbrella insurance, check out these FAQs for all that you need to know!
I have car and home insurance. Why do I need umbrella insurance?
Umbrella insurance picks up where auto, homeowners, and boat liability policies leave off. If you hit the policy limits for liability coverage in any of those policies, your umbrella coverage steps in. It provides coverage for liability, as well as some personal injury claims, such as libel slander, and invasion of privacy. This means that your home, belongings, vehicles, and finances are completely covered!
What are the different limits offered?
Depending on the insurer, general umbrella insurance coverage can range from $1 million to $5 million so that you have all-encompassing coverage.
Who is covered by my umbrella policy, and where?
Most umbrella policies will provide protection for you and the resident relatives of your household – anywhere in the world.
Does umbrella insurance include business or professional coverage?
No, but you can purchase commercial umbrella insurance for your professional liability needs.
How much coverage do I need?
As with any insurance policy, the amount that you need greatly depends on your individual risk and current coverages. Talk to your insurer to find out the right limits for your needs and budget.