Umbrella Insurance

Umbrella insurance is a type of liability insurance that provides extra coverage beyond the limits of your primary policies, like home or auto insurance. It kicks in when those policies max out, protecting you from major claims or lawsuits. It typically covers personal liability, legal fees, and sometimes additional risks like libel or slander, depending on the policy. It’s a safety net for catastrophic events, often affordable because it’s used rarely.

In addition to large claims and lawsuits, umbrella insurance covers liabilities your auto and home policies do not, like if you are sued for libel or defamation, defense costs and renting a vehicle in another country. It will not cover damage to your own property, business-related matters or intentional acts. Some policies today allow you to purchase additional uninsured/underinsured riders that will extend coverage to you for injuries sustained in an accident that go above both the at-fault parties coverage and your own uninsured/underinsured coverage on your auto insurance.

There may be some exclusions and a minimum liability limit on the primary policy required to qualify for an umbrella policy.  Watch these free FinStream TV videos to learn more about Umbrella Insurance.