Umbrella Insurance 101

Umbrella insurance is a form of liability insurance that will supplement your basic liability policies. It spreads beyond the basic coverages of your auto, home or renters policies. The formal name for this kind of policy is a personal umbrella policy (PUP). An umbrella liability policy covers a much higher limit than other personal policies.

In the event of an unforeseen tragic accident in which you’re found responsible for damages or bodily injuries, your umbrella policy is there to save the day. Having an umbrella policy is essentially like having a huge umbrella covering your head everywhere you go, hence the name.

Coverage for real-life risks

Here’s a few things that are covered on your umbrella policy:

• Bodily injury
• Personal injury
• Property damage
• Landlord liability

What’s Not Covered

• Damages caused by yourself to your personal property
• Business losses
• Criminal or intentional actions
• Contracts (oral or written)