What is Umbrella Insurance?
An umbrella insurance policy serves as a liability safeguard in cases where your existing insurance policy limits are exceeded.
From legal fees to medical expenses, an umbrella insurance policy protects you from financial devastation by supplementing your primary insurance plans in the event of a lawsuit or liability claim.
How Umbrella Insurance Works
For umbrella insurance to activate, your primary coverage must be exhausted first.
For example, if your auto insurance policy has a liability limit of $300,000 and you’re found liable for $500,000 in damages to another’s property, your umbrella policy could cover the remaining damages up to your umbrella policy limit.
What does Umbrella Insurance cover?
Umbrella coverage policies typically provide coverage for you and other household members.
Here’s what umbrella insurance typically will and won’t cover:
| Typically Covered by Umbrella Insurance | Typically Not Covered by Umbrella Insurance |
|---|---|
| An extra layer of liability coverage for your home, auto, RV, or boat policies. | Coverage for business-related liabilities |
| Coverage for injuries that you cause | Intentional damage you cause |
| Liabilities that happen abroad | Punitive damages awarded to a plaintiff |
| Property damage that you cause | Recreational activity liability |
| Legal defense fees for slander or defamation of another’s character | Pollution or environmental damage |
Scenario: You just purchased your brand new home and moved in with your friendly dog, Fido. One day, Fido acts out of character and unexpectedly bites a guest on your property. The guest suffers from severe injuries, and the cost of their medical expenses exceeds your homeowners insurance policy limits. Thankfully, you have umbrella insurance that kicks in to provide additional financial protection during this troubling time.
Get Connected with an Agent Today!
Don’t hesitate to reach out to one of our insurance agents experienced in serving the unique needs of military families.
Why Choose Veterans United Insurance?
Our umbrella insurance policies are as comprehensive as our approach to customer service! Alongside the #1 VA Lender in the country*, Veterans United Home Loans, our team is determined to set up our service members and Veterans for homeowner success with insurance plans that prioritize their needs, budget, and peace of mind.
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Umbrella Insurance Frequently Asked Questions
How much does umbrella insurance cost?
Umbrella insurance is relatively inexpensive compared to the amount of coverage it provides. However, many factors go into determining the cost of an individual’s umbrella insurance policy.
Insider Tip:
An insurance agent can provide personalized guidance and help you make informed decisions by helping you compare rates and see how an umbrella policy could supplement your primary insurance policies.
Who needs umbrella insurance?
Most individuals can benefit in some way from having a personal umbrella policy. However, those who need umbrella insurance the most include homeowners, business owners, and those who have assets they would like to preserve in cases of lawsuits.
Is umbrella insurance good for rental property?
Whether you own long-term rental property or short-term rentals like Airbnb or VRBO, umbrella insurance can benefit you. Landlords face higher liability risks by renting property, such as slip-and-fall accidents, property damage, or allegations of negligence. Umbrella insurance provides additional liability coverage beyond what a standard landlord insurance policy typically offers, helping to protect landlords against large liability claims or lawsuits.
Get Connected with an Agent Today!
Don’t hesitate to reach out to one of our insurance agents experienced in serving the unique needs of military families.
