Umbrella Insurance

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Umbrella insurance gives policyholders extra insurance beyond the limits and coverages of their existing policies.Umbrella policies can protect your assets from; lawsuits, medical bills, injuries, etc. If your homeowners or auto insurance’s limit is not high enough to cover an incident, an umbrella policy can help.


What can an umbrella policy cover?


Here are some scenarios:

If you are responsible for a car accident

  • You cause a 15-car accident and your auto insurance property damage coverage can only replace a certain number of victims' vehicles. Your personal liability coverage is also not high enough to pay for their medical bills.

Someone gets injured on your property

  • Your teenage daughter throws a party at your house while you’re out of town. Someone brings alcohol to the party, and one of the guests injures himself by jumping off the roof. His parents decide to sue you for the damages and the underage drinking.

If your dog bites someone

  • Your dog runs out of the house and aggressively bites your neighbor. Your neighbor sues you to cover her medical bills, lost wages, and pain and suffering.


You are sued for libel or slander

  • Your son starts a rumor about a faculty member at school. The teacher decides to sue you for slander.  

Umbrella policies do not cover:

  • Your personal property

  • Business losses

  • Liability assumed on a written or oral contract

  • Intentional criminal acts


Excess Liability vs Umbrella Policy

Excess liability and umbrella insurance sound the same, but they are two different coverage types. An excess liability policy is an added layer of protection beyond what's in your existing policies. Umbrella insurance provides higher coverage limits for your primary policies in addition to covering exposure gaps in those policies.


Call us for a Quote

Elementary is focused on helping you increase your savings, raising your deductible, providing you with discounts and applying credit as much as possible. Learn more about Elementary homeowners insurance products, or if you’re ready to take the next step, call (813) 212-8505 for a FREE no obligation quote.


Information gathered from:

https://www.investopedia.com/articles/personal-finance/040115/how-umbrella-insurance-works.asp 




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