Define: Umbrella Policy

An umbrella policy is a type of liability insurance that provides additional coverage beyond the limits of your primary insurance policies, such as auto or homeowners insurance.

An umbrella policy provides extra protection in case you are sued for damages that exceed the limits of your primary insurance policies. It can help protect your assets and future earnings.

Umbrella policies typically provide coverage in increments of $1 million, with higher limits available depending on your needs.

An umbrella policy covers a wide range of liability risks, including bodily injury, property damage, and personal injury claims such as libel or slander.

An umbrella policy can provide additional liability coverage for your business, but you may need a separate commercial umbrella policy depending on the size and nature of your business.

The cost of an umbrella policy varies depending on factors such as the amount of coverage, your risk profile, and the insurance company. It is generally affordable for the amount of coverage it provides.

Most insurance companies require you to have primary insurance policies, such as auto or homeowners insurance, in place before you can purchase an umbrella policy.

Some umbrella policies allow you to add additional insureds, such as family members or employees, for an additional cost.

If you exceed the coverage limits of your umbrella policy, you may be personally responsible for any remaining damages. It’s important to regularly review and update your coverage limits to ensure adequate protection.

If you need to file a claim under your umbrella policy, you should contact your insurance company or agent as soon as possible to start the claims process.