Leif Olson, Car Insurance Writer
@leif_olson_1
No, umbrella insurance does not cover damage to your own property. This is because umbrella insurance only provides coverage beyond the limits of your other liability policies, and damage to your own property is not covered by liability insurance. Further, if there are things specifically excluded from your other liability policies, umbrella insurance will not cover them, either.
Other Situations Umbrella Insurance Does Not Cover
- Your own injuries or property damage
- Damage that you cause while committing a criminal act
- Property damage or injuries that you cause while performing business or professional activities
- Any liability that you assumed through a contract prior to the incident
- Property damage or injuries caused by dog breeds or recreational vehicles that are specifically excluded from your policy
To learn more, check out WalletHub’s guide to umbrella insurance.
People also ask
What is umbrella insurance?
Umbrella insurance is a type of insurance policy that extends the liability limits of an underlying policy, like homeowners or auto insurance, to provide more protection during liability claims. Umbrella insurance can also protect the policyholder's assets against things like libel and slander lawsuits.
Key Things to Know About Umbrella Insurance
- Umbrella insurance is specifically designed for people who have at least $1 million in assets and who want extra protection beyond...
How much does umbrella insurance cost?
A $1 million umbrella insurance policy costs about $150 to $300 a year. Higher coverage amounts will add $50 to $75 per year to the cost. What you actually pay will depend on the risk of insuring you, where you live, how many cars and homes you have, and the size of your family.
How Much Umbrella Insurance Typically Costs
| Coverage Amount | Average Cost |
Is umbrella insurance tax deductible?
Personal umbrella insurance is not tax deductible, but premiums for business-related insurance policies generally are tax deductible. The costs associated with insurance policies that are not related to any sort of business venture are considered personal expenses and thus are not eligible for a tax deduction.
The main exception is if you are self-employed. If you use your vehicle directly for work-related purposes (not just commuting), you can usually claim some of your auto insurance on your taxes. Additionally,...
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