Umbrella insurance is a type of supplemental liability insurance that increases the coverage of an underlying policy. Unfortunately, many people who need the additional coverage have questions about umbrella policies or may be unaware that they are an option. Below are answers to some of the most common umbrella insurance inquiries.

FAQ About Umbrella Insurance

What is an umbrella policy?

Umbrella insurance works with an underlying home, auto, or business insurance policy. It raises the liability coverage limits and covers certain items the other policy might exclude.  

How does umbrella insurance work?

Umbrella insurance comes into play if you accidentally injure someone or damage their property. It only pays out after your underlying coverage amount is exhausted. For instance, if your dog should bite a passerby, you'd file a claim with your homeowners insurance policy. Once that policy's limits have been reached, your umbrella insurance pays for additional medical and legal bills.

Why do you need umbrella insurance?

Medical care and legal representation have become extraordinarily expensive. Because they involve both doctors and lawyers, auto injuries, dog bites, and slip-and-fall lawsuits can quickly devour the liability portion of your home or auto insurance coverage, which often tops out at $100,000 to $300,000. However, umbrella coverage limits reach $1 million, $2 million, or more, and protect you against catastrophic costs that would otherwise fall on you.

What exclusions does umbrella insurance cover?

Part of the benefit of umbrella insurance is that it plugs holes in the underlying coverage. Many business and home insurance policies exclude coverage for lawsuits against you due to libel or slander, as well as malicious prosecution and unlawful imprisonment. Typically, umbrella coverage offers protection against all of these and pays for lawyer fees, court costs, and judgment or settlement amounts for such matters.

If you need help designing an umbrella insurance policy, contact Siemers Insurance Agency in Cincinnati, OH. They have served Hamilton County and the Tri-State area for more than 60 years. They also carry auto, motorcycle, home, business, and life insurance coverage. Connect with them through their website or call (513) 469-8877 to request an insurance quote.