5 Things You May Not Know About Umbrella Insurance

When it comes to protecting the things that matter most, umbrella insurance is extra liability coverage that goes above and beyond the limits of your other insurance policies. Your umbrella policy may also cover some situations that aren’t covered by your primary policies. The term umbrella is used to reference this broad reaching coverage.

How Does Umbrella Coverage Protect You?

Personal umbrella liability insurance acts like a second layer of protection that comes into focus after your primary liability limits have been met and may even cover you in certain situations when your other policies don’t. If you’re looking for extra security, umbrella insurance is an answer that can help to protect future earnings and everything you’ve worked so hard for.

While most people have heard about umbrella insurance, not everyone understands how it works. We’ve uncovered five facts about umbrella insurance that may surprise you.

1. Personal injury coverage

personal-injury-coverage

One great way umbrella insurance protects you online is with coverage for libel, slander and defamation of character. If you’re found liable for slanderous comments made online, this coverage can help pay for the related costs and legal fees. This important coverage may not be included in your standard homeowners or renters policy.

2. Protects assets and future earnings

protect-earnings

You’ve saved hard for those things that matter in your life — an umbrella is designed to help protect your goals. Imagine if you accidentally hit a bicyclist and are found liable. If the damages are $1 million and your auto insurance covers up to $250,000, then your umbrella will step in and cover the remaining $750,000, leaving your savings and future earnings intact.

3. Extra protection over recreational vehicles

extra-protection-over-vehicles

Most people think of an umbrella policy as an extra layer of protection added to their home and auto insurance policies, but it actually extends further. If you enjoy recreational vehicles, you’ll be happy to discover that an umbrella policy can also extend over your boat, motorcycle, snowmobile, ATV/UTV, etc. Check with your agent to make sure your recreational vehicles are covered.

4. Legal defense costs

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If you are sued, your umbrella insurance will cover your defense costs in most cases, regardless of fault. Legal defense costs are covered in addition to your policy limit.

5. Provides worldwide coverage

worldwide-coverage

Are you planning on traveling in the future? An umbrella policy is a great travel companion. If you’re involved in an incident or want some extra liability protection during your travels in the United States or abroad, your umbrella policy gives you added security. Other underlying policies may not provide this liability protection.

  1. Umbrella insurance is a great idea for those with assets and future earnings that need protecting. Medical costs and jury awards are trending upwards - the liability limits on your underlying home, auto, or recreational vehicle policies may not be enough to cover injuries or damages from an accident you are liable for. With Umbrella coverage, you’ll have another layer of protection for your savings after your primary underlying insurance liability limits have been met.

  2. With personal umbrella coverage, we’ve got your back. We’ll protect more than just you with this great policy. We’ll cover:

    • You and your spouse
    • Anyone named on your policy
    • Relatives living with you
    • Your legal representative, if you were to pass away
  3. Having coverage for lawsuits can make a big difference, particularly with the liability risks of driving a car daily. But there are other good reasons to get covered as well. Some additional reasons to consider an umbrella policy are if you:

    • Drive during rush hour, where the odds of getting into an accident are increased
    • Drive to and from work every day
    • Own a home
    • Own or use recreational vehicles such as ATVs, snowmobiles, boats, etc.
    • Own a dog
    • Have a swimming pool
    • Have a trampoline
    • Have guests over regularly

Find the Personal Umbrella Liability Coverage You Need

If you’d like to take advantage of liability coverage from an umbrella policy, contact your American Family Insurance agent to learn more about how you can benefit.


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Related Topics: Home Insurance , Car Insurance , Insurance Terms , Insurance Needs