What is an Umbrella Liability Insurance Policy?

umbrella insurance from Pacific Unified Insurance

Huge settlements are becoming more commonplace these days, even for accidents that happen in someone’s home or as a result of an auto accident. If you are held responsible for an injury or accident and your home or auto policy does not cover the amount awarded, you could be left owing thousands or even millions of dollars to the injured party. An umbrella policy is designed to offer protection above and beyond your existing policies and to protect you in this scenario.

What is an Umbrella Liability Insurance Policy?

Umbrella insurance is an extra policy designed to protect you if something goes wrong and you are held responsible for a large claim. It can help you protect your income and assets and give you peace of mind about your financial health and future.

Umbrella Policy in Action

What happens when you need to use your umbrella policy? If you are found to be at fault in a car accident, and the injuries experienced by others exceed the Bodily Injury limit on your insurance policy, you could be liable for any extra amounts. If you have an umbrella policy, that insurance will cover the extra amount you’re responsible for – so instead of owing an extra $100,000 or more, you simply use your umbrella policy to cover you for the amount that exceeds your auto insurance limit. An umbrella policy gives you peace of mind and protects you when something goes wrong.

What Does an Umbrella Policy Cover?

This type of policy offers broad protection for a variety of claims and reasons. With an umbrella policy, you’ll be covered for the following types of events, up to the coverage limit you’ve chosen. While each policy is different, expect to see coverage for most or all of the following:

  • Injuries caused by you or family members living in your household
  • Property damage caused by you or your family members
  • Injuries caused by your dog or other pets
  • Personal liability for accidents that happen on your own property or elsewhere
  • Coverage for injuries that happen in your home, on your property or on your rental property
  • Coverage for injuries beyond the limit of your auto insurance policy
  • Personal injury claims coverage for libel, slander, false arrest and more
  • Legal costs for covered losses

AnchorExclusions: What’s Not Covered by an Umbrella Liability Policy?

While the umbrella policy offers broad coverage, there are often some exclusions. These will vary by provider but could include any or all of the following:

  • Coverage for damage you caused intentionally
  • Coverage for damage caused by your business (if you have a personal policy)
  • Liability you contractually agreed to
  • Damages related to your use of some watercraft (often jet skis and related personal watercraft), air craft and other recreational vehicles
  • Property damage to things you own
  • Workers compensation damage

An umbrella policy offers an affordable way to protect your financial future and ensure you are not left owing thousands of dollars after an accident or event. This type of policy can give you peace of mind and ensure you are fully protected in the case of an accident on your property, with your vehicle or in a variety of other circumstances. Learning more about umbrella policies allows you to make the best possible decisions for your home and family, so please give Pacific Unified Insurance a call to find out more.

Dave Leahy (133 Posts)

Born and raised in Southern California, Dave was educated at Loyola High School and Arizona State University. After graduation, he founded two successful restaurants in Arizona, eventually selling them to move back to California. He began his insurance career working for Canadian Indemnity Insurance Company before joining Frank M. Flynn & Company in 1979. In 1985, he purchased the agency, eventually joining other local insurance agency owners to form Pacific Unified Insurance in 1992.


Filed under: Homeowners Insurance — Dave Leahy @ 10:52 am April 19, 2017


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