Umbrella Insurance

What is Umbrella Insurance ?

Accidents happen in life and sometimes they can have financial consequences in which you’re held liable. That’s why you may want to consider getting an umbrella insurance. An Umbrella policy may offer liability protection in cases where the damage exceeds the limits on your homeowners or car insurance policies. This coverage can potentially protect your assets like your home, savings, and even your future earnings. Umbrella insurance typically offers at least 1 million dollars of liability protection. Of course you don’t expect something like this would happen to you but accidents do happen. Having Umbrella policy will give you peace of mind.

Umbrella Insurance

Difference Umbrella Policy from Excess Liability

Although umbrella insurance can be of the same as an excess liability coverage, an umbrella policy can offer a greater coverage. For an excess liability coverage it only provides coverage for the same risks as your underlying policy. And takes place with the same exclusions. For example for excess liability coverage on your car insurance. You’ll have an extended protection for your liability if your being held responsible for in the event that you hit a car. However excess liability coverage will not cover for a libel or slander settlement. Meanwhile for umbrella policy libel or slander judgment against you is an added coverage. Umbrella policy also offers coverage for false arrest and invasion of privacy.

Umbrella Insurance

What Is Not Covered By an Umbrella Insurance?

Your Personal Property

Although Umbrella policy helps finance the expenses if you’re held responsible for the damages to someone else’s property. This coverage cannot apply to damages you cause to your own property. For example your breaker exploded causing fire to your home, your homeowners policy will cover that for you and not your umbrella. But your umbrella policy takes into effect if the fire which started in your home destroys your neighbor’s property. In this type of situation your umbrella policy can cover you. Take note that your umbrella insurance may cover the damages caused by your negligence. But it would only take into effect after you exhaust your policy limits.

Criminal or Intentional Acts

Your umbrella policy will definitely not cover you from the consequences if you intentionally harm someone or someone else’s property. Your Insurance will not tolerate Illegal behaviors. For example you hit a neighbor’s dog and a cctv camera caught you red handed your umbrella policy will not protect you.


If you engage yourself with an oral or a written contract. Your umbrella policy will not protect you in case that individual file a lawsuit against you.

How much is an Umbrella Insurance ?

An umbrella insurance policy premium is typically less expensive. Especially if the policy you will purchase is from the same insurance company where you got your home, auto, or other insurance products. One requirement to add an umbrella insurance policy is to have a base coverage of $150,000 to $250,000 for auto insurance. And $250,000 to $300,000 for homeowners insurance but it varies depending on the insurance provided you choose. An umbrella insurance normally costs about $150.00 a year for each $1million of coverage. To check how much umbrella policy is available for you click get a quote now.