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What Is Not Covered by Umbrella Insurance?

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April 28, 2022

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Umbrella insurance is extra insurance coverage that provides additional protection that goes beyond your current insurance policy limits. If you’re interested in purchasing umbrella insurance, you may be wondering what is not covered by umbrella insurance policies. To find out, continue reading. 

What Does Umbrella Insurance Cover?

Umbrella insurance helps protect your assets in two primary ways. First, it provides additional coverage when your homeowners, auto, or boat insurance limits have been exhausted. In addition to this, umbrella insurance also provides coverage for claims that your other liability policies may exclude. For example, claims like false arrest, libel, slander, and liability coverage on rental units can be supplemented with umbrella insurance. 

Your umbrella insurance policy will help cover all of the following:

  • Lawsuits involving defamation or slander
  • Medical bills or expenses for injury treatment for others
  • The other party’s funeral costs
  • Tenant injuries/property damage by a tenant if you’re the landlord
  • Legal defense costs

What Isn’t Covered By Umbrella Insurance?

Umbrella insurance won’t protect you against everything because it is a supplemental form of coverage. You usually have to meet a certain coverage limit on your home or auto insurance before you can add an umbrella policy on top. For example, it isn’t possible to hold $5,000 worth of homeowners insurance and then add $1 million of umbrella insurance on top of it. 

Furthermore, umbrella insurance doesn’t cover everything a standard insurance policy covers. Instead, it only applies to liability. 

Umbrella insurance doesn’t cover:

  • Your injuries
  • Criminal acts
  • Intentional acts
  • Damage to your belongings
  • Injuries or property damage in certain instances
  • Damage or injuries that your business is liable for

Simply put, umbrella insurance will never cover your own costs. It’s designed to help cover expenses if you are sued for damages and found at fault. 

Will Umbrella Insurance Cover My Business?

If you own a personal umbrella insurance policy, your business will not be covered by that plan. You typically need a separate business umbrella insurance policy to protect your business. Even if you run a business from inside your home, you may need business coverage in addition to your homeowner’s insurance. 

Get Extra Protection With Umbrella Insurance

Umbrella insurance is becoming more common, as are liability issues and lawsuits. To get the extra protection you may need on top of your other insurance policies, contact Magnolia Insurance Agency online or give us a call at 770-213-5171 today. We can help you find affordable umbrella insurance that keeps you safe from liability issues. 

Umbrella Policy / By Magnolia Insurance Agency

Contact Us Today – 770-213-5171

Stephen Dufour
Owner, Magnolia Insurance Agency
Office: 770-213-5171
Fax: 770-338-6932

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