Understanding the breadth of your home, auto, or watercraft coverage can reduce the frustration and anxiety of dealing with a lawsuit or handling a mishap on your property. What many homeowners don’t understand is that their liability coverage may not cover expenses such as the injured person’s medical bills, rehabilitative therapy, lost wages or legal defense fees should the case go to trial. This is where umbrella coverage kicks in.

By adding umbrella insurance to an existing home, auto, or watercraft policy, you can gain an additional $1-5 million in liability protection with a very small increase in annual costs. This protection also guards against libel and slander, wrongful eviction, or false arrest, and will cover you no matter where in the world you go. And if you have multiple policies, you may even qualify for multi-policy discounts. 

While typical policies cover you against the loss of the thing in question (e.g., your home, car, or boat), umbrella insurance protects you from the fees incurred when a person injured on your property decides to sue. If you own a rental unit, umbrella insurance also protects you against liability issues you may face as a landlord, such as a tenant falling and injuring themselves on your property.

When the fees of a lawsuit overextend beyond your existing policy, your umbrella insurance can cover the remainder up to the limit you set. Consider it insurance for your own peace of mind.