Understanding Umbrella Insurance

What is umbrella or excess liability insurance? A simple definition is that it's an insurance policy that provides coverage above and beyond your auto and home policy limits—think of it as an umbrella over the top of those other coverages.* Here are a few examples to help explain:

1. Your dog runs into a neighbor’s yard and bites someone.
2. You cause an auto accident that results in significant injury to others.
3. You are having a party, and someone slips and falls on your property.

While these examples may be covered by your standard policy limits, there is potential that the damages awarded in a lawsuit could cause these numbers to get quite large. If you are found responsible for higher-sum injuries or damages, your coverage limits may not be enough. If you do not have enough coverage on your home or auto policy, you would be responsible for the difference. If you have an umbrella policy, it would kick in when your primary policy limit is exhausted or if your primary policy does not provide coverage and the umbrella does.

Umbrella insurance provides peace of mind, knowing you are protected with higher limits and broader coverage.

To learn more, visit the Acuity website or contact your independent agent.

*Subject to the terms and conditions of the policy

Sources:

https://www.acuity.com/personal/home-and-auto-insurance-package/umbrella-insurance

https://www.investopedia.com/articles/personal-finance/040115/how-umbrella-insurance-works.asp