What Is Personal Umbrella Insurance and Who Does It Cover?

If you cause severe injury to someone, you could be sued beyond what your home and auto insurance will cover. Those whose insurance does not cover the lawsuit could lose everything. However, a relatively inexpensive policy that will pay out on excessive lawsuits might make sense for some people to carry.

What Is Personal Umbrella Insurance?

Personal umbrella insurance can be an affordable way to cover lawsuits resulting from an accident or injury that is not covered by your current home, auto and watercraft policy limits. It protects not just the homeowners and primary drivers but can cover everyone in the household, including kids, if they cause accidental bodily harm to someone.  

What Else Does Personal Umbrella Insurance Cover?

Personal umbrella insurance can also cover injury you cause outside of your home. For instance, if you contribute to your child’s bake sale and accidentally give someone food poisoning, you’d be covered under most umbrella policies if you were sued. Rental property owners may wish to carry personal umbrella insurance if a tenant sustains a serious injury that is not fully covered by renters’ insurance.

An insurance agent can best help you decide if your family’s lifestyle warrants personal umbrella insurance. It can be a small price to pay for peace of mind.