Umbrella insurance provides liability coverage above the limits of your condo insurance policy.
If you are sued over an accident, for instance, and the settlement is more than the liability limit on your condo insurance policy, umbrella insurance can help cover the cost.
What is Umbrella Insurance?
Personal umbrella insurance is a type of insurance designed to add extra liability coverage over and above another insurance policy, such as auto or homeowners insurance.
Who Is Covered By A Personal Umbrella Policy?
A personal umbrella policy helps protect you (the policy owner) as well as the members of your household if you are found liable for a covered incident. This typically includes your spouse, dependents and any other relatives living with you.
An umbrella insurance policy offers optional liability protection beyond what your auto and homeowners insurance policies cover.
Your personal umbrella policy may not, however, cover someone in your household who has auto or property coverage in their own name or through another insurer. For example, your son may be excluded from your umbrella policy if he has renters insurance on an apartment near his college campus. (He may want to consider his own personal umbrella policy.) Your mom, who lives with you full-time, may not be covered on your policy if she has her own auto insurance policy. Be sure to talk to your agent about any potential exclusions so that you know exactly who is included on your policy.
What Does a Personal Umbrella Policy Cover?
Coverage from a personal umbrella policy typically extends beyond incidents at your home, even if you are traveling outside of the country. For example, if your car slides on the ice and causes damage to another vehicle, your umbrella policy will likely cover damage that exceeds your auto policy’s limits (within the stated limits of your umbrella insurance coverage).
Your umbrella policy may also help provide protection for something not covered by your home or auto policy. For instance, if your husband rents a snowmobile while on a winter getaway, and is involved in an accident that results in property damage and physical injury to another person, your umbrella policy may help pay for the costs or repairs and medical bills of the injured individual, even if you do not have recreational vehicle insurance.
Umbrella insurance protection may also extend beyond physical damage, providing financial help (within stated limits) if you’re sued for libel or slander. So if your teenager’s strong opinion about a business on social media results in a lawsuit, an umbrella policy will likely help cover legal fees and, if necessary, pay for fines or damages.
Keep in mind that not everything is covered by a personal umbrella policy, regardless of whether it is in or out of your home. Your personal belongings and business, even if it is run out of your home, will most likely not be covered. Talk to your agent to be sure exactly who and what your umbrella policy covers, and ask if there is any additional coverage you need to consider.
Extra Protection When You Need It Most
An Allstate® Personal Umbrella Policy offers protection for you and your family against large and potentially devastating liability claims or judgments. It’s called an umbrella policy because it offers an extra layer of protection over and above your standard auto or homeowners insurance. In short, a PUP kicks in when your liability limits have been reached.
Consider these potential real-life PUP scenarios:
- An accident on your swing set causes serious injuries.
- A guest has an accident around your pool that requires surgery.
- You’re burning leaves and cause a fire that damages neighborhood homes.
- You accidentally crash your boat into another boat.
- Your teen driver accidentally hits a pedestrian.
- A broken step causes your babysitter or a guest to have an accident.
- Your dog bites someone and you are sued for the damages
- You post a negative online review that results in an alleged defamation lawsuit.
What Is Covered?
Personal Umbrella Policies cover a wide range of losses, including any damages arising out of a covered occurrence* anywhere in the world that you are legally obligated to pay because of:
- Bodily Injury: Medical costs, loss of income and funeral expenses of other people involved in an accident
- Personal Injury: False arrest, invasion of privacy, libel, slander, humiliation or defamation of another person’s character
- Property Damage: Physical destruction of someone else’s property, including the resulting loss of its use
- Landlord Liability: Bodily injury to or property damage of a tenant who resides in your rental property
Who Is Covered?
- You and your spouse
- Any person named on the Policy Declarations
- Any relative or dependent living with you
- Your legal representative, if you die
Your PUP Doesn’t Cover Everything
While a PUP can keep you covered for many of life’s unexpected scenarios, there are some occurrences that are not covered** under the umbrella policy, such as liability or damages related to:
- Your business
- Your personal belongings
- Intentional or criminal acts or omissions
- Any written or oral contract
Why you need umbrella protection
In today’s culture, lawsuits are common and it’s a real possibility you will be sued if you’re ever found at fault in a major auto accident, a serious mishap on your property or an accident halfway across the world.
How a Personal Umbrella Policy Works
PUPs are typically available in increments of $1 million, all the way up to $5 million. When considering the right amount for your PUP, it’s important to think beyond just your banking or investment assets. Your PUP should include enough protection for all your assets, including your home, valuables and earning capacity, too. Your agent can help you determine the right amount of coverage for you.
What are some benefits of having a personal umbrella policy?
Besides the extra liability protection, the policy provides you with defense costs, attorney fees, personal injury protection and worldwide coverage.
Why do I need a personal umbrella policy?
Your property and vehicle insurance policies don’t cover personal injury liability. Also, you could get sued for more than the underlying limits of the property or vehicle policy.