What is Personal Umbrella Insurance?
Personal umbrella insurance is extra liability insurance, it extends the limits on your underlying policy (usually a homeowners or auto policy). Umbrella insurance is designed to protect your personal assets after a catastrophic event or any claim excessive of your underlying coverage limits. Another way umbrella insurance benefits home and auto owners is by adding additional coverages usually excluded from home/auto policies. These coverages can include: false arrest, libel, slander and liability coverage on rental units you own.
To be more specific, umbrella policies only extend coverage for liability claims such as injuries, property damage, certain lawsuit expenses as well as personal liability claims. Some examples of coverages available with umbrella insurance include:
- Bodily Injury Liability. This coverage will add extra protection for situations such as third-party injuries in your home, injuries to others as a result of an auto accident and injuries caused by your pet (some breeds excluded, see animal liability for more information on insuring against dog bite/injury lawsuits).
- Property Damage Liability. This coverage extends limits for the costs of damage or loss to another person's tangible property. This can include damage to another vehicle as a result of an accident where you were at fault, damage to another person's property made by your pet and even accidental damage to school property caused by your child.
- Owners of Rental Units. This coverage provides extra landlord coverage to those who own rental units. Claims on this coverage could include a third-party injury arising from a crack in the cement on your rental property or such claims as an injury caused by your tenant's dog.
- Coverage can also be provided should you be sued for:
- Slander (spoken).
- Libel (written).
- False arrest, detention or imprisonment.
- Malicious prosecution.
- Shock/mental anguish.
- Other personal liability situations.