Umbrella Insurance Policy: How it Works and What it Covers

What is an Umbrella Insurance Policy? 

An umbrella insurance policy provides coverage above and beyond the typical property insurance. It covers property damage, injuries, personal liability situation, and certain lawsuits.

Let’s say you own a rental property, and you buy landlord insurance for that property that covers up to $300,000 in liability. Accidentally, your tenant in that property was injured on the premises and sues you for damages and the cost of the injuries is $500,000. Your landlord 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 and beyond the limits of your landlord policy.   

What Does Umbrella Insurance Cover? 

  • Bodily Injury Liability- it helps you cover the cost of the medical bill and liability claims to injuries. For example, a delivery man who slips and falls on your wet patio or dog caused harm to a passerby on your property. 
  • Property Damage Liability- it helps you cover the cost of loss or damage to others’ property. For example, it covers accident-related damage to the other automobile.
  • Legal Costs- it helps you cover the court costs and other legal and lawyer fees.  

What Doesn’t Umbrella Insurance Cover? 

  • Your own injuries or damage/loss to your personal property
  • The damage you cause intentionally and criminal acts 
  • Liabilities stemming from your occupation or business 
  • The liability you agreed to assume under a contract you signed 
  • Liability of armed conflict or war-related damage 

Several factors that can affect umbrella insurance costs: 

  • Your net worth 
  • Your location/ Where you live 
  • Your driving records 
  • Your credit history 
  • Your profession 
  • Your risk of filing an umbrella insurance claim

Klinger Insurance Group provides top-rated umbrella insurance policies and comprehensive insurance policies at the best possible rates. Switch to Klinger Insurance Group! You can reach us at 301-428-4935 or email us or visit us at Get a free quote online!

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