Purchasing insurance is generally a good way to ensure that you don’t have to cover expensive costs out of pocket if something goes wrong. However, insurance policies have limits and sometimes these limits are not high enough to completely cover the costs of an incident. ┬áThis is where umbrella insurance comes in.

What Is Umbrella Insurance?

Umbrella insurance is a type of insurance coverage that acts as a fail-safe to your existing insurance coverage. If something happens that costs more than your existing insurance policy’s limit, umbrella insurance kicks in and covers the remaining amount.

How Much Does Umbrella Insurance Cost?

Umbrella insurance itself can range in price from $150 to $300 per year.  However, you are required to have a certain amount of existing insurance coverage to be eligible for umbrella insurance.  This means that you may have to purchase additional liability coverage to be able to obtain umbrella coverage.

What Does Umbrella Insurance Cover?

Some of the things that umbrella insurance covers are:

  • Others’ injury treatment costs
  • Others’ property damage 
  • Lawsuits
  • Legal fees

While umbrella insurance covers a lot of different incidents, there are some exceptions. Some of these are:

  • Injuries to your person
  • Damage to your belongings
  • Intentional/criminal acts

Sometimes, your existing insurance policy doesn’t have a high enough limit to cover everything you need. Umbrella insurance can help.