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Umbrella Insurance

Frequently Asked Questions
About Umbrella Insurance

Q: How does Umbrella Insurance work?

A: When you have a homeowners insurance or auto insurance policy in place, there is a limit on the amount of liability that you’re covered for. If you are sued for a dollar amount that exceeds the liability limit in your other insurance policies, an Umbrella policy would kick in to cover the difference. Without an Umbrella Insurance policy, you would have to pay for any costs that exceed your current liability limits out of pocket.

Q:  Who needs an Umbrella Insurance policy?

A: Everyone can benefit from having this type of insurance in place to protect them from a liability claim, which can be financially devastating without this extra coverage


Q: What can an Umbrella Insurance cover?

A: Umbrella Insurance can provide relief if you are sued for causing someone else’s serious injuries or property damage. Homeowners and Auto Insurance policies have liability coverage, but an Umbrella Insurance policy can protect you when this coverage runs out.


Umbrella insurance can help with the following and more:

  • Liability for serious bodily injury or substantial property damage

  • Malicious prosecution

  • Libel and/or slander

  • Landlord liability


Q: I already have an auto policy and a homeowner’s policy, why do I need a personal Umbrella policy?

A: In addition to increasing limits of liability coverage for those policies at a low cost, it may provide coverages not available on your auto or homeowners policy, such as coverage for traveling abroad.

Q: How much can an Umbrella policy cost?

A: Umbrella policies are rated on how many vehicles you have, whether the policy will be covering over homeowner’s liability, driver ages/records and other things.  An agent will be able to provide you with an accurate quote


Q: What is not included in an Umbrella policy?

A: The following is not included:

  • Your own injuries or if cause damage to your personal items or property

  • Injuries or property damage that you intentionally cause or while a criminal act

  • Liability that you assumed through a contract prior to the incident

  • Recreational vehicles that are uncovered or are specifically excluded from your policy


Q: Do I need an auto policy and a homeowner’s policy if I have a personal Umbrella policy? 

A: Yes, you will need an auto and/or homeowner’s policy. These policies pay first, then if their liability limit is used up, Umbrella Insurance kicks in. An Umbrella policy is always the secondary payer, not the primary payer.

Q: What are some personal Umbrella claim examples?   

A: Here are just a few examples:

  • You’ve hosted a party at your home and one of your guests had too much alcohol to drink. After the party he attempts to drive home and he’s involved in an accident. Your guest sues for $2 million for medical bills and property damage.

  • A friend was riding on your jet ski while at your lakeside cottage and is seriously injured when it flips over. Your friend sues you for $1 million in medical bills and wins the judgement. Your homeowner’s policy has $500,000 in liability, so the Umbrella will pay the remaining $500,000.

  • Your teenager posts a damaging photo of a classmate on a social media platform. The other teen’s parents sues and wins a $1 million judgement for mental anguish damages.  ​

An Umbrella Insurance policy would cover these types of incidents.


Q: Does a personal Umbrella policy cover my whole family?

A: Yes, although some exclusions may apply. Your insurance agent will help you understand which members of your household may qualify for Umbrella protection.


Q: What info should I have when I get an Umbrella insurance quote?

A: You should gather info about you and everyone in your household that includes: 

  • Vehicle(s) that are owned, including motorcycles, recreational vehicles, watercrafts, golf carts, etc.

  • Other insurance policies such as homeowners, renters, etc., and what your liability limits are for each one

  • Additional properties you may own and information about the homeowner or landlord policies on those homes

  • A list of any liability claims you may have had and any civil or criminal charges that may have been brought against you

  • If applicable, a list of traffic convictions for anyone in your household within the last 5 years

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