Who is covered under my umbrella policy?

The rule of thumb for umbrella insurance is to buy as much coverage as your total net worth, factoring in assets like your home, car, investments, and even your retirement accounts. For example, if you own assets worth $1 million, then you should purchase at least $1 million in umbrella coverage.… read full answer

Umbrella insurance provides liability coverage beyond the limits of an existing insurance policy. Most umbrella policies also provide coverage for claims involving libel and slander. Since individuals with a moderate or high net worth can be a target for lawsuits, purchasing umbrella insurance can keep your assets from being seized if a liability judgement against you exceeds your home or car insurance limits. As a result, it’s usually a good idea to err on the side of caution and purchase more umbrella coverage rather than less.

For more information, check out WalletHub’s complete guide to umbrella insurance.

An umbrella insurance policy does not cover your own injuries or damages to your own home, car or property. Personal umbrella insurance also will not cover intentional acts, criminal behavior, damage caused while you’re performing business activities, or damage from certain dogs or vehicle types. If you need umbrella insurance for business purposes, you can purchase a commercial umbrella policy.… read full answer

What Umbrella Insurance Does Not Cover

• Your own injuries or property damage
• Property damage or injuries that you intentionally cause
• 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

Because umbrella insurance extends the limits on an existing home or auto liability insurance policy, it does not apply to anything that is specifically excluded from the underlying coverage. To learn more, check out WalletHub’s guide to umbrella insurance.

Umbrella insurance covers injuries, property damage, certain lawsuits, and personal liability situations that exceed your home and auto liability coverage. An umbrella policy extends your liability insurance limits and offers protection for situations not covered by a standard liability policy, such as libel or slander.

On the other hand, umbrella insurance does … read full answernot cover claims that are excluded outright from liability insurance, such as intentional damage or damage to your own property.

What Umbrella Insurance Covers

• Liability in excess of auto/home insurance policy limits
• Libel and slander
• Malicious prosecution
• Psychological harm and mental anguish
• Legal defense costs related to liability claims
• Liabilities when traveling overseas
• False arrest

Umbrella insurance is typically recommended for individuals who have a high net-worth that can’t be covered by a standard liability policy. To learn more, check out WalletHub’s guide to umbrella insurance.