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What Is Umbrella Insurance And What It Covers

Umbrella insurance is a type of personal liability insurance that can be a huge advantage when you find yourself liable for a claim larger than your homeowner's insurance or auto insurance covers.


Umbrella insurance doesn't only cover false imprisonment, slander, and libel as it also provides liability coverage beyond what your renter's policy covers if you own a rental property.


What An Umbrella Insurance Covers

Simply put, umbrella insurance's goal is to protect you from situations that can lead to a huge financial loss. In case you have a recreational vehicle, a second home, if you have considerable home equity, or even if you have other personal assets that you want to protect, you should consider an umbrella policy.


Here are some examples of situations where an umbrella insurance can help you be protected:

  • Your son gets into a fight at school and breaks another kid's nose. His parents sue you.

  • You send some food for a trip to your son's school and some students develop food poisoning. Their parents sue you.

  • Your dog manages to get out of your backyard and attacks your neighbor. He sues you to cover his pain, suffering, lost wages, and medical bills.

  • Your underage son decides to host a party at home when you're out of town and someone brings alcohol. One of the guests is then arrested for driving under the influence when he is on his way home. You are sued.

  • You caused an accident when you were driving to work but your auto insurance and personal liability coverages aren't enough to pay for all the damage.


If you take a closer look at all the examples above, you can easily see that umbrella insurance doesn't only cover the policyholder but also the household and other family members. But more than this, umbrella insurance also covers more than your homeowners and auto insurance and the situation may not even involve your vehicle or property. On top of all this, this type of insurance covers you worldwide with one exception only: your homes and cars and under other countries’ laws.

Do You Need Umbrella Insurance?

Now that you understand what umbrella insurance is and what it covers, you may be wondering if it can benefit you as well.

The reality is that umbrella insurance can benefit almost everyone. If you think about it, accidents happen all the time. And the problem is that some of these accidents may result in high costs. So, when you have an umbrella policy, you may prevent paying out legal or medical bills when you are found responsible.

One of the best things is that umbrella insurance doesn't only protect you. It can also be extended to other members of your household like your spouse, children, and even other relatives who live at your home.




Why You Should Consider Getting Umbrella Insurance


At Ellerhorst Russell Insurance Agency, you may can have the protection you need with our Umbrella insurance. In addition, you may also benefit from legal defense, protection against claims of slander, libel, defamation of character, false imprisonment, and wrongful conviction, and it will also cover the property you were renting or borrowing with permission.



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