Umbrella Insurance: What Does and Doesn’t Cover

Protecting your family and assets is a top priority, which is why people have insurance. Umbrella insurance can provide an extra level of security for your family when medical, legal, and property damages extend beyond what your home and auto policies cover. It kicks in at higher dollar levels and also extends to special situations involving pets, lawsuits, and foreign travel.

What Is Umbrella Insurance?

Umbrella insurance is a type of personal liability insurance that can be indispensable when you find yourself liable for a claim larger than your homeowner’s insurance or auto insurance will cover.

What Umbrella Insurance Cover

Here are some examples of incidents an umbrella policy could cover if your homeowner’s insurance or auto insurance wasn’t enough:

Home Accidents

Umbrella insurance can cover bodily injury liability from accidents that occur at home. For example, if your guests are injured in a swimming pool or on a trampoline, or even if a passerby simply trips on an uneven sidewalk leading to your house, you could be held responsible for medical bills or liability claims. If your home insurance policy doesn’t explicitly include such accidents, an umbrella policy may cover injuries for guests who require medical attention.

Auto Accidents

Auto insurance has several components, but bodily injury liability and property damage liability deal exclusively with liability. An umbrella policy financially protects you. For example, the cumulative damage from a multicar accident may cost hundreds of thousands of dollars or more. If you are found responsible for the accident, your liability insurance will pay for the damage — but only up to your specified limits. You’ll be responsible for covering the remaining balance out of pocket. If you have an umbrella policy, it will cover the rest of the damage.

Pet-Related Incidents

If you have a dog or cat that bites, scratches or injures someone, you could be held responsible for medical expenses as well as lost income. In cases like these, an umbrella policy may help you cover any bodily injury liability.


If you find yourself being sued for any reason, a personal umbrella policy may help go above and beyond your standard auto and home policies to protect your home and financial accounts. For example, if you’re involved in a car accident resulting in medical-related damages that exceed your auto insurance policy’s bodily injury coverage limit, an umbrella insurance policy can cover the remaining amount to avoid future garnishment of your wages or other legal action.

Damage Caused by Dependents

An umbrella policy could cover damage inflicted by young children. For instance, if your child is playing in the front yard and breaks a nearby window — as well as a valuable ornament sitting on that window ledge — an umbrella insurance policy provides the additional liability protection of your assets and property.

Charges of Defamation

If you’re an active blogger, reviewer, or contributor to a web publication, you might consider an umbrella insurance policy that covers slander (spoken defamation) and libel (written defamation). An umbrella policy may protect you from financial ruin if you’re facing a libel lawsuit stemming from negative statements made on your social media, personal blogs, or review sites.

What Umbrella Insurance Won’t Cover

Umbrella insurance doesn’t cover your own injuries or damage to your own property. For example, your health insurance would typically cover medical expenses for injuries and your homeowners insurance would cover your property from problems like fire or theft.

Here are other losses typically not covered by umbrella insurance:

  • Damage to your personal belongings
  • Business losses
  • Criminal acts
  • Written or oral contracts
  • Intentional acts or injury
  • Damage due to nuclear radiation, war or terrorism
  • Communicable disease, such as a lawsuit against you for giving someone herpes


Ultimately, umbrella insurance can provide a valuable layer of protection, helping you safeguard your finances. As with any type of insurance, it’s important to carefully consider your lifestyle and associated risks before deciding whether or not umbrella insurance coverage is necessary for you. ONYX Insurance Brokers can assist you anytime with your insurance needs. Contact or email us now!

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