August 13, 2021

Standard homeowners insurance policies help pay medical expenses when someone is injured in your home or if you are liable for damage to a neighbor’s property. But that may not be enough insurance coverage. Umbrella insurance provides another layer of coverage to help you protect your assets.

Umbrella insurance works the same way for auto or renters insurance. It usually provides much higher limits than standard policies, but costs relatively less than many other forms of insurance.

For example, if you have auto insurance with a liability limit of $300,000 and you are sued for $500,000, you could lose $200,000. An umbrella policy could cover that.

You can’t have just an umbrella policy. You must a minimum amount of standard policies before you can purchase an umbrella policy.

What is not covered in an umbrella insurance policy?

If you are injured in your home or in an auto accident, it does not cover your injuries. It doesn’t cover damage to your personal belongings. An umbrella policy usually will not cover your home office property.

What else is not covered under an umbrella insurance policy? An umbrella policy would not cover property damage or injuries if you are driving a recreational vehicle that is not covered. It may not cover you if you own certain pets that are considered unsafe. It also doesn’t cover intentional or criminal acts.

If you ran a daycare from your house, that would not be covered. Because that is a business and that would have to be covered by business insurance.

Who should purchase an umbrella insurance policy?

Anyone who is worried that their standard insurance doesn’t cover them sufficiently or anyone concerned about protecting their wealth should consider getting an umbrella insurance policy.

Homeowners with property that poses greater liability risks should consider umbrella insurance policies, such as:

  • Homeowners with swimming pools.
  • Homeowners with hot tubs.
  • Homeowners with trampolines.
  • Homeowners with fire pits.
  • Homeowners with treehouses.
  • People who own a boat or recreational vehicle.
  • People who entertain frequently in their homes.
  • Landlords.

The agents at the Leliaert Insurance Agency can help you determine if an umbrella insurance policy is right for you.