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What is Not Covered By an Umbrella Insurance Policy?

Personal umbrella insurance provides an extra layer of liability coverage, going beyond the limits of your existing insurance policies. While umbrella insurance offers significant protection, it is essential to understand what is not covered by an umbrella policy. 


In this article, we will explore the scope of coverage provided by umbrella insurance and shed light on what it does not cover.


What is Covered By Personal Umbrella Insurance

Firstly, let’s review what an umbrella insurance policy typically covers. An umbrella policy extends liability coverage in the following areas:

  1. Car Accidents: If you are involved in a severe car accident where the damages exceed your auto insurance limits, the umbrella policy will provide additional coverage to bridge the gap.
  2. Accidental Injuries on Your Property: If someone sustains injuries while on your property and decides to file a lawsuit, an umbrella policy can provide coverage beyond what your homeowners insurance policy offers.
  3. Accidents Involving Recreational Vehicles: Umbrella insurance can cover liability arising from accidents involving your boat, ATV, or other recreational vehicles. This ensures that you have sufficient protection if damages exceed your underlying policies’ limits.
  4. Golf Course Injuries: If you are an avid golfer and accidentally injure someone on the golf course, an umbrella policy can help cover the costs of medical bills, legal fees, and potential damages resulting from a lawsuit.
  5. Defense Fees and Other Legal Costs: This often includes coverage for defense fees and legal costs. This can help alleviate the financial burden associated with legal proceedings.
  6. Personal Injury Coverage: Umbrella policies may also offer personal injury coverage, which protects you against claims of libel, slander, defamation, false arrest, and other personal injury offenses.

What is Not Covered By Personal Umbrella Insurance

While this insurance provides extensive coverage, it’s important to recognize its limitations. Here are some key areas that are typically not covered by an umbrella policy:

  1. Your Personal Property: This does not protect your personal belongings or property. It primarily focuses on liability coverage, so if you are looking to insure your personal belongings, you will need separate policies such as homeowners insurance or renter’s insurance.
  2. Your Own Injuries: Umbrella policies are designed to cover liability claims against you, not your personal injuries. For medical expenses resulting from accidents or health-related issues, you will need health insurance or other appropriate coverage.
  3. Business Losses: If you operate a business, losses incurred in connection with your business activities are generally not covered by a personal umbrella policy. To protect your business adequately, it is recommended to obtain a separate business umbrella policy or business liability insurance.
  4. Criminal Acts: It does not provide coverage for intentional criminal acts. If you engage in illegal activities and face legal consequences, an umbrella policy will not protect you.

How Can Umbrella Insurance Help You?

By filling the gaps in your existing liability coverage, umbrella policies provide an extra layer of financial protection. It ensures that you are prepared for unforeseen events that may lead to costly legal claims and potential damages. You can have peace of mind knowing that you have additional coverage when your underlying policies’ limits are exhausted.


Get Protected With Bethany Insurance

If you are interested in obtaining personal umbrella insurance to enhance your liability protection, reach out to Bethany Insurance today. Our experienced agents can guide you through the process and help you find the right policy that suits your needs.