What is Umbrella Insurance?

Umbrella insurance is a policy that helps provide another layer of financial protection after a liability claim has exhausted your existing policy’s limits. Whether opting for personal, farm and ranch, or commercial umbrella insurance, an umbrella policy helps provide peace of mind after an unexpected loss.

How does umbrella insurance work?

Once your primary policy covering the claim has been exhausted, your umbrella insurance helps cover your remaining losses up to your umbrella policy’s limits. For example, you get in an auto accident, resulting in a $600,000 settlement to help pay for accident-related medical bills. Your auto policy’s bodily injury liability limits are $500,000, and your personal umbrella policy’s limit is $1 million. Your auto policy’s bodily injury liability coverage may pay up to $500,000 for your damages. Once paid, your personal umbrella insurance may help cover the remaining balance. Without an umbrella policy in place, you would owe $100,000 or more out of pocket in the same scenario.

What does umbrella insurance cover?

Whether opting for commercial, farm and ranch, or personal umbrella insurance, the coverages help financially protect you from liability claims. The following coverages are included in a personal umbrella:

• Bodily injury liability
• Defense costs
• Landlord liability
• Personal injury offenses
• Property damage liability

Umbrella insurance coverage examples.
Umbrella insurance helps cover accidents related to your primary policies’ liability protections. While not exhaustive, umbrella insurance may help cover the following accidental events:
– Your dog jumps on a mail carrier, resulting in costly medical bills.
– James, your teen driver, hits the gas instead of the brakes, sideswiping multiple cars and injuring several people.
– Visitors carrying expensive personal items slip on your icy driveway, leaving you liable for their costly medical and property damages.
– You accidentally injure someone in an ATV accident.

Who needs umbrella insurance?

Personal, farm, and commercial policyholders may benefit from an umbrella policy. Accidents are a part of life, whether at home or work. Umbrella insurance provides additional financial protection beyond your liability insurance coverages.

Who does an umbrella policy protect?

Regardless of the umbrella policy type, personal, farm and ranch, or commercial, an umbrella policy may protect you and other eligible parties. For example, a personal umbrella policy may cover you, your spouse or domestic partner, and relatives living with you.

How much umbrella insurance do I need?

You are responsible for damages if a lawsuit or settlement exceeds that of your existing policy. Umbrella insurance helps protect what you have from those types of losses. Getting enough umbrella insurance to protect your net worth is typically standard. Contact your agent to determine a suitable limit if you have additional risks, such as a trampoline in your backyard.

How do I buy umbrella insurance?

Contact your insurance agent with questions about your underlying policy requirements and to sign up for coverage. The William Young Agency is happy to assist! Life’s better when you’re under our roof.