When it comes to protecting the things that matter most, umbrella insurance is extra liability coverage that goes above and beyond the limits of your other insurance policies. Your umbrella policy also covers situations that aren’t covered by your primary policies. The term umbrella is used to reference this broad-reaching coverage of liability. For many different reasons, umbrella insurance is a smart idea to help insulate you from financial loss.
And coverage isn’t just limited to personal policies. American Family Insurance offers commercial umbrella liability insurance policies that can protect businesses beyond their normal policy limits as well.
Although you’ve likely heard about umbrella insurance, how it works can be hard to understand because it covers such a wide variety of situations. Here are some important facts about umbrella insurance that may surprise you.
Home and Auto Insurance Extension Policies
Our liability coverage extends across a wide range of circumstances that can put your finances, upcoming wages and possessions at risk. Extensive protection like this means that you’re going to have a safety net in place when you need it most.
Coverage at home. If a guest slips on the stairs of your home and breaks an arm, your personal umbrella liability insurance will kick in if the costs extend beyond your homeowners limit, up to the limit of your umbrella policy. This applies to medical and legal expenses if you’re found to be liable for the accident.
Extra protection over vehicles. Most people think of an umbrella policy as an extra layer of protection added to their home or auto insurance policies that extends coverage further. If you enjoy recreational vehicles, you’ll be happy to know that an umbrella policy can also cover your boat, motorcycle, snowmobile, ATV/UTV, etc. if you face a loss that extends beyond their coverage limits.
Protects assets and future earnings. Personal umbrella insurance is all about shielding your finances. Imagine for a moment that you accidentally hit a bicyclist while driving and are found liable. If the damages are $1 million and your auto insurance covers up to $250,000, your umbrella policy will step in and cover the remaining $750,000, leaving your savings and future earnings intact.
Personal Liability Travel Insurance
If you’re planning on traveling abroad, an umbrella policy is a great travel companion.
Worldwide coverage. Our umbrella liability insurance protects you — wherever you are. From accidents on the road to accidental damage to other’s property overseas, this coverage can act as a shield to help pay outstanding costs that extend beyond your normal, covered limits.
Personal Injury Protection With Perks
From false arrest to libel or defamation of character, your umbrella policy can offer financial help when you find yourself in a liability dispute. You’ll feel great knowing that we’re on your side.
Personal injury coverage. Although the name may seem to offer coverage when you get hurt, personal injury insurance actually protects you against personal injury allegations like libel and slander, and false arrest, detention or imprisonment. For example, lawsuits that are the result of content you post to social media, if found to be defamatory or harmful to others, may be covered. Other situations apply as well. This important coverage may not be included in your underlying policy.
Take a look at our umbrella FAQs for more details on how this kind of policy can benefit you.
To take advantage of the many benefits that personal liability coverage offers, contact your American Family Insurance agent. Your savings and everything you’ve worked so hard for will be safer, and you’re going to feel great with that extra coverage in place.