2 min read
24 May

What Is Umbrella Insurance?

An umbrella insurance policy is an additional layer of liability coverage that goes beyond the limits of your existing homeowners, auto, or watercraft insurance. It provides extra security for those who may be at risk of being sued for damages to other people’s property or injuries caused to others in an accident1. Think of it as a safety net that shields your assets and future from unexpected events.

How Does an Umbrella Insurance Policy Work?

An umbrella insurance policy offers two crucial benefits:

  1. Coverage Beyond Existing Policies: When the limits of your homeowners, auto, or boat insurance are exhausted, umbrella insurance steps in to provide additional coverage. It ensures that you’re protected even when your primary policies fall short.
  2. Protection Against Exclusions: Umbrella insurance covers claims that might be excluded by other liability policies. These include situations like false arrest, libel, slander, and liability coverage for rental units you own2.

What Does Umbrella Insurance Cover?

Umbrella insurance generally provides liability coverage for the following:

  1. Injuries: If someone is injured due to an accident, umbrella insurance covers medical bills and liability claims. Examples include serious auto accidents where you’re at fault or harm caused by your dog.
  2. Property Damage: When you’re responsible for damage to someone else’s tangible property (e.g., vehicles), umbrella insurance helps cover the costs.
  3. Certain Lawsuits: It protects you against claims like slander, libel, false arrest, and mental anguish.
  4. Personal Liability Situations: Whether you’re a landlord or a homeowner, umbrella insurance safeguards you from unexpected liability claims2.

Who Needs Umbrella Insurance?

While your existing auto and homeowners insurance cover some situations, umbrella insurance offers additional peace of mind. It insures you beyond the limits of those policies and covers scenarios not addressed by other types of insurance. Consider getting an umbrella insurance quote today—rates are often more affordable than you might think2.

What Isn’t Covered by an Umbrella Policy?

An umbrella policy does not provide coverage for:

  1. Your Personal Injuries or Property Damage: It’s not meant to cover your own injuries or damage to your belongings.
  2. Criminal or Intentional Actions: If you intentionally cause harm to someone else, umbrella insurance won’t protect you.
  3. Liability Assumed Under a Contract: Any liability you’ve agreed to under a contract isn’t covered2.

How Can Umbrella Insurance Help Protect You?

Think of umbrella insurance as an extra layer of security. It shields your assets, savings, and future from unexpected legal claims. Whether you’re a homeowner, landlord, or boat owner, having umbrella insurance ensures that you’re prepared for life’s uncertainties3. Remember, it’s always a good idea to consult with an insurance professional to determine the right coverage for your specific needs. Stay protected and enjoy peace of mind with umbrella insurance!

For more information, you can visit GEICO’s Umbrella Insurance page and explore their comprehensive coverage options4.2

You Can Also Get in Touch With Stillwater Insurance On:

  • Phone: 1-800-849-6140
  • Fax: 1-855-209-7821
  • Email: Umbrella@Stillwater.com

* The email will not be published on the website.