What Does Umbrella Insurance Cover?
Umbrella insurance provides an extra layer of liability protection beyond the limits of your existing policies, such as home, auto, or boat insurance. Here are the primary areas it covers:
- Personal Liability: This coverage helps protect you against lawsuits for bodily injury or property damage caused to others. If you are found liable, umbrella insurance can cover legal fees, settlement costs, and judgments.
- Defamation Claims: Umbrella insurance extends coverage for claims involving libel, slander, or defamation of character, protecting you in instances where someone claims damage to their reputation.
- Injuries to Others: If someone is injured on your property or due to your actions, umbrella insurance can help cover medical expenses, lost wages, and pain and suffering claims.
- Rental Properties: If you own rental properties, an umbrella policy can provide additional protection against lawsuits arising from those properties.
- International Coverage: Many umbrella policies also offer coverage for incidents that occur outside your home country, providing global protection against liability claims.
It’s important to note that umbrella insurance typically requires you to maintain certain minimum liability limits on your underlying policies. Therefore, it acts as a supplemental safeguard for high-risk situations, providing peace of mind in an uncertain world.