Umbrella Insurance: What It Typically Does and Doesn’t Cover

Umbrella insurance is insurance coverage designed to offer liability protection above the limits of your existing insurance policy, such as a home or car insurance policy. This additional protection can offer the peace of mind needed by Collierville, TN residents in the event of a significant accident or incident. Brock and Poole Insurance Agency shares information below to help you better understand umbrella insurance and what it can and can’t cover. 

What Umbrella Insurance Covers

This type of policy offers coverage of liability expenses that exceed the limits of your standard insurance policy. Usually, both property damage and bodily injury claims are covered under umbrella insurance. In addition, related legal costs are covered as well.

Let’s say you have a home insurance policy with a maximum payout for liability of $500,000. In the event that a house guest slips and falls on your property get bitten by your dog, or a similar situation, your home insurance will only cover liability expenses up to $500,000. In the event that the costs, such as medical bills, lost wages, etc., exceed that $500,000, your umbrella insurance will kick in. 

What Umbrella Insurance Doesn’t Cover

An umbrella insurance policy is only created to offer liability coverage. Therefore, if your auto or home suffers damage, this type of insurance will not cover the costs. Instead, you will need to rely on your auto or home insurance.

If you would like to learn more about umbrella insurance in Collierville, TN, if you have specific questions about coverage, or if you are ready to invest in an umbrella insurance policy, reach out to speak to one of the professional insurance agents at Brock and Poole Insurance Agency.