Umbrella Insurance, or Excess Liability Covers You After Liability Limits On Other Policies Are Reached
Umbrella insurance provides additional layers of liability protection if the liability limits are exhausted on your home, auto, or other underlying insurance policy.
Imagine what would happen if your dog was to bite a neighbor’s child, or if there was an accident on your rental property. Or maybe you live in a townhome, and your home catches fire. What if that fire spreads to other units?
It’s very likely your current liability limits wouldn’t protect your assets or your future earnings.
Your Umbrella Insurance Kicks In When the Other Stops
Once the liability limits are exhausted on your home, auto, or other policy, your umbrella policy takes over and provides a second layer of protection of at least $1,000,000. Higher limits may also be available.
An umbrella insurance policy also pays some claims and legal fees not covered by your home, auto, or other underlying insurance. The policy covers not just you, but your spouse and all family members living in your household.