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What Does Umbrella Insurance Cover?

Suppose you find yourself in a situation that involves legal trouble. If you are liable for a certain claim, there is a possibility that the claim is larger than what your current insurance policies, such as homeowner’s insurance, can cover.

In that case, individuals need to have an umbrella insurance policy to help add an extra layer of protection beyond their existing policies. This article will discuss how umbrella insurance works and what this policy can cover.

What exactly is umbrella insurance?

Umbrella insurance can be related to a type of fail-safe or last-option policy that extends the protection of your existing policy coverages. This insurance policy is basically an extra type of insurance that can provide additional coverage for certain things, such as property damage, lawsuits, injuries, and personal liability scenarios.

For example, if you own a vehicle that needs your auto insurance for certain damages, umbrella insurance will continue the coverage where your auto insurance stopped if needed.

Umbrella Insurance Coverage

This type of insurance policy can help you and other household members become extra protected beyond the coverage of your other insurance policies.

Umbrella insurance can also cover you from claims that are possibly not under the liability policies. If you get an umbrella insurance policy, this can usually give you coverage for things such as:

  • Specific lawsuits

  • Personal liability scenarios

  • Injuries

  • Damage to property

Something else to note with an umbrella insurance policy is that it can usually cover all related legal fees beyond the liability limit. For example, your umbrella insurance has liability coverage of $500,000. If you are sued for the full amount, the insurance company will give you your maximum liability coverage and an additional for the legal fees.

What isn’t covered by umbrella insurance?

While umbrella insurance seems like it covers many things besides your existing insurance policies, there are also some aspects that this type cannot cover. Here are instances where umbrella insurance doesn’t cover for you:

  • Personal injury

  • Damage to your own property

  • The liability assumed under a contract

  • Criminal or malicious action that damages someone else


While you are certain to have other types of insurance policies for protection, these policies can only offer coverage up to a certain extent. If you require coverage that exceeds this limit, an umbrella insurance policy might be something that you require. Umbrella insurance will help you with the portion of expenses that your other types of insurance policies don’t cover.

At Second Western Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!


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