Understanding umbrella insurance

by Hilary W. Foutes REALTOR® 09/29/2024

Umbrella insurance is a policy that can cover the gaps in many other types of insurance policies by answering some of life’s major “what if” questions. While it’s common to have many types of insurance policies, umbrella coverage can provide financial assistance for a variety of outlying situations.

Here is a basic guide to umbrella insurance to help you learn more:

What does umbrella insurance cover?

Umbrella insurance provides additional personal liability coverage for situations not included in other policies. The major liability issues umbrella coverage includes are bodily injury, property damage and legal coverage in certain lawsuits.

Umbrella insurance can help you in a variety of situations where another person is injured due to an accident. These might be events your auto insurance or homeowners insurance cannot pay for. Some examples include:

  • A guest falls while visiting your home
  • You’re at fault in a major traffic accident
  • A neighbor is bitten by your dog

It can also cover you if you’re sued for certain things, including but not limited to libel, slander or false imprisonment.

What is not covered by umbrella insurance?

There are several key differences between umbrella insurance and other types of policies. For example, here are some things similar to those listed above are not covered:

  • Damage to your personal property.
  • Medical bills from a personal injury, typically your own.
  • Any liability assumed under a contract.

Do I need umbrella insurance?

Hopefully, you will never have to worry about these or any other types of insurance claims, but umbrella insurance can mitigate your losses if something should go wrong.

Ultimately, the decision is personal and might depend on numerous factors including your property type and location, how many vehicles you own and what your existing home and auto insurance limits are.

The more you know about your options, the greater peace of mind you’ll have. Discuss with an insurance professional to find out what makes the most sense for your situation.

About the Author
Author

Hilary W. Foutes REALTOR®

As a forty three-year resident of Swampscott and having been in Real Estate for 21+ years on the North Shore of Boston, I have had top award-winning sales performances year after year in our local community. Achieving top sales results with extensive knowledge of Swampscott, Marblehead and the surrounding north shore towns have made me an expert in my field and demographic area. I am considered one of the best negotiators around, have tremendous relationships with inspectors, lawyers, appraisers, contractors, and even my fellow colleagues in this business. I pride myself on my attention to detail, expert transaction coordination, fiduciary obligations, knowledge of the real estate legalities, and ability to handle the most important purchase or sale of your financial portfolio…YOUR home!