What is Umbrella Insurance
Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies. Umbrella insurance can provide coverage for injuries, property damage, certain lawsuits, and personal liability situations.
How does an umbrella insurance policy work?
An umbrella insurance policy helps protect your assets and your future in two important ways:
Umbrella insurance may provide coverage when your homeowners, auto, and boat insurance policies limits are exhausted.
Umbrella insurance provides coverage for claims that may be excluded by other liability policies including claims like false arrest, libel, slander, and liability coverage on rental units you own.
What does umbrella insurance cover?
Umbrella insurance provides coverage beyond the limits of your other insurance policies, or for claims that may not be covered by liability policies. Umbrella insurance generally provides liability coverage for:
Damage to property
Personal liability situations
Who needs umbrella insurance?
You're thinking, "I have auto and homeowners insurance that covers some of these situations." True! But umbrella insurance insures you above and beyond the limits of those policies and covers some situations not covered by the other types of policies. Call us at (630) 802.3301 to get an umbrella insurance quote today – the rates are less than you think!
Umbrella Policy Coverage Examples: Bodily injury liability covers the injuries sustained by another person because of the accident. Examples include the cost of medical bills and/or liability claims due to injuries caused by:
A serious auto accident where you're at fault
Harm caused to others by your dog*
A guest in your home falls
A neighbor's child falls while playing in your yard
Property damage liability covers the cost of damage or loss to another person's tangible property. Examples include the cost associated with damage to vehicles and other property due to an auto accident where you are at fault.
Owners of rental units help protect against liability that you may face as a landlord. Examples include the cost of liability claims due to:
Someone tripping over a crack in the sidewalk of your rental property and suing you for damages
Your tenant's dog* biting someone and you being held responsible for the injuries
Coverage is also provided if you're sued for:
Slander: An injurious spoken statement
Libel: An injurious written statement
False arrest, detention, or imprisonment
What is not covered by an umbrella policy?
An umbrella policy generally does not provide coverage for:
your injuries or damage to your personal property
a criminal or intentional action causing damage to someone else
liability you assume under a contract
How can umbrella insurance help protect you?
Let's look at an example to help you better understand how an umbrella policy would work to protect you. Let's say you cause a car accident and the cost of the injuries you cause to others is $500,000. Let's also say that the bodily injury limits on your auto insurance are $300,000. Your auto policy will cover $300,000 of the injuries. But who will cover the remaining $200,000?
Your umbrella insurance policy will. It will cover the amount above the limit set in your auto insurance policy, up to the limit you choose for your umbrella policy.
Here's a breakdown of total cost, where your auto insurance limits might be exceeded, and how umbrella insurance can help protect you:
Total Cost of Car Accident $500,000
Auto Insurance: Bodily Injury Limit$300,000Umbrella Insurance$200,000
How much does umbrella insurance cost?
The cost of an umbrella policy depends in part on how much coverage you choose to buy. There are other factors, like your location, the number and types of vehicles you own, if you own multiple houses, and other items, that may affect umbrella policy premiums. Our umbrella insurance agents can help you get a policy that fits your needs.
GEICO requires a minimum bodily injury limit of $300,000/$300,000 and a property damage limit of $100,000 or $250,000/$500,000 and a property damage limit of $100,000 on your auto policy to qualify for an umbrella policy. Homeowners/Renters Personal Liability coverage of $300,000 is also required. Contact us to receive a quote for increased auto insurance limits.