An Extra Layer of Protection: Umbrella Coverage

Accidents happen and some are more severe than others. Consequently, so are the costs to repay or repair the damage that result from an unfortunate event.


Depending on the liability limits that your existing insurance policies carry, an accident in your home, on the road, or someplace else where you could be at fault for injuries or loss, can be covered by your car insurance, homeowner’s insurance, boat insurance or some other policy you carry.


But what happens if something catastrophic occurs and the payout to repair or repay these damages exceeds what your policies cover? This is where Umbrella (also known as Personal Liability coverage) comes in.


What Does an Umbrella Policy Cover?


Unlike home or auto coverage, Umbrella coverage provides you an extra layer of protection on your savings and other assets – not your physical property. Simply put, Umbrella coverage would address any defense costs or medical bills that may result from someone that is not a member of your household having an accident on your property (e.g., a slip and fall on your icy driveway) or because of being on your premises (e.g., your dog biting a dinner guest). This includes physical damages as well as emotional distress, also referred to as “pain and suffering.”



What Doesn’t an Umbrella Policy Cover?


An Umbrella policy does not cover damage to your property or any injuries you might sustain. Other insurance policies you have, such as health insurance, homeowner’s insurance, or auto insurance, can address those claims.


If you’re a business owner, your personal Umbrella policy will not cover any claims or damages associated with your business (in this case, a Commercial Umbrella policy would be ideal).


In some instances, boats or other watercraft are excluded in Umbrella coverage. Consult your agent to learn the details of your specific situation when securing an Umbrella policy.


How Do You Know if an Umbrella Policy is Right for You?


Generally, an Umbrella policy is a good idea for anyone that fits the following criteria:


  • Have a considerable amount of assets and savings.
  • Have a rental property.
  • Host parties or events in your home on a frequent basis.
  • Have a young or inexperienced driver in your household.
  • Coach a children’s sports team.
  • Serve on the board of a nonprofit.
  • You or someone in your household are a public figure.
  • Participate in sports where you could easily injure others (e.g., hunting, surfing, skiing).
  • Own items that could lead to someone else being injured in your home (e.g., a pool, trampoline, guns, or dog that is considered an aggressive breed).


Umbrella Policies can be tailored to your specific needs and determining the amount of coverage you should carry is a conversation that should be had between you and an insurance agent you trust to guide you in the right direction. Please feel free to reach out to our team at J. Hoffman Insurance to schedule a conversation or for a quote: 845-239-4787 or