What’s Not Covered Under an Umbrella Insurance Policy?

Knowing what is covered with an umbrella insurance policy is just as important as knowing what’s not covered. You might already know that umbrella insurance is extra personal liability coverage, which can protect you if your insurance doesn’t cover an entire lawsuit’s payout.

However, this isn’t a silver bullet against liability. There are certain things umbrella insurance policies will not cover—and the last thing you want is an unpleasant surprise during an already stressful time.

Here’s a quick guide to umbrella insurance policy coverage. If you have any questions, don’t hesitate to contact Harvey Sarles Insurance Agency.

What is an umbrella insurance policy?

An umbrella insurance policy is extra liability coverage. If you own a home, vehicle or boat, you probably already have insurance policies for those items.

If you’re involved in an auto or boat accident or if someone is injured on your property, your existing insurance policies may not be enough to cover full liability. Umbrella policies provide extra coverage so your savings and assets aren’t wiped out.

Umbrella policies typically cover the homeowner (or vehicle/boat owner) along with members of your household. For example, say your teenage son’s friends were goofing around on your property and got injured—and then their parents sue you. If your homeowners insurance isn’t enough to cover your liability, the umbrella insurance kicks in.

What isn’t covered under an umbrella insurance policy?

Umbrella insurance policies don’t cover every kind of accident or harm. First, they don’t cover your own injuries or property damage—only the injuries and property damage inflicted upon others. They also don’t cover injuries and property damage that you intentionally caused or those which occurred during the course of business or other professional activities.

If you assumed liability for injuries or property damage through a contract, that contract supersedes your insurance policy. You will not be able to use your umbrella insurance policy in that event.

Finally, if you have any dog breeds or recreational vehicles which are specifically excluded from the policy, related injury and property damage is not covered.

Do I need umbrella insurance?

How do you know if you need umbrella insurance? While the answer varies from person to person and family to family, the best way to tell is to look at your finances. How much do your homeowners and auto insurance policies cover? What’s the average cost of a car accident, boat accident or injury on someone else’s property? Would a lawsuit wipe out your personal savings?

If your current insurance policy is insufficient or if you just prefer the peace of mind that additional coverage brings, an umbrella insurance policy is a wise decision. Life is full of surprises, but you can mitigate the unpleasant ones by getting umbrella coverage.

Deciding on an insurance policy or policies can be difficult. The insurance agents at Harvey Sarles Insurance Agency are glad to help you figure out what kind of coverage you need. Call us today to discuss our policies, get a quote and decide which coverage is right for you.

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