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Umbrella insurance

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    Umbrella insurance coverage

    Just as an umbrella shields you from the rain, umbrella insurance does much the same. An umbrella policy offers coverage beyond your car, home/condo or renters insurance policy, helping to protect you from claims that exceed those underlying policies' liability limits.

    What is umbrella insurance?

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    What does umbrella insurance cover?

    Umbrella insurance is designed to offer additional coverage for the difference between the maximum amount of your car, home/condo or renters insurance policy liability limit and the actual cost of a claim. 

    Here is an example of how umbrella coverage may come into play: 

    In addition to car accidents, umbrella insurance may provide additional coverage for liability claims that come from incidents, such as a guest being injured in your home, you being named in a personal lawsuit, or you damaging someone's reputation by libel, slander or defamation of character. 

    You may choose umbrella coverage limits of $1 million or $2 million. 

    While driving on the highway, you accidentally hit a minivan carrying five passengers. Your car insurance policy liability limits will pay a maximum of $250,000 per person and $500,000 per accident. In this case, all five passengers are injured with claims totaling $750,000. Your car insurance policy pays $500,000. But, what about the remaining $250,000? If you have an umbrella insurance policy, it may cover the additional $250,000 not covered by your car insurance policy.
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    Coverage not provided by umbrella insurance 

    While umbrella coverage may help protect you in a wide variety of circumstances, not all claims are protected by an umbrella insurance policy. Here are some claims umbrella insurance does not apply to: 

    • Intentional damage
    • Business-related damage
    • Claims made as a result of owning, maintaining and using recreational, non-traditional vehicles like hovercrafts and aircrafts
    • Damage to your own property
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    Do I need an umbrella policy? 

    To help you decide whether you need an umbrella policy, consider the following:

    • If someone is injured in a car accident in which you or insured family members were at fault — or if a guest is injured at your home — and your underlying policy limits are exhausted, you could be sued for the outstanding amount, which could put your retirement funds, investments, savings and future earnings at risk.
    • If you own a pool or trampoline, the risk of injuries at your home increases substantially. Do you have enough in savings to pay for a claim that exceeds the liability limits on your home policy?
    • When traveling in a foreign country or on vacation, umbrella insurance may provide coverage if you have an accident.
    • Umbrella insurance may cover you if you are sued due to a decision you made as a member of a nonprofit board or a comment you made on social media.

    Umbrella insurance from helps protect your assets and provides additional peace of mind. 

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    Get a free insurance quote 

    Give us a call to discuss your umbrella insurance options. Keep in mind, we typically require that you have an active car policy with our company in order to have umbrella insurance.
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    American Family Insurance is our brand name. Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company, Madison, WI. Property policies are underwritten by Homesite Indemnity Company, Homesite Insurance Company, Homesite Insurance Company of California, Homesite Insurance Company of Florida, Homesite Insurance Company of Georgia, Homesite Insurance Company of Illinois, Homesite Insurance Company of New York, Homesite Insurance Company of the Midwest or Homesite Lloyd's of Texas, Boston, MA. American Family Connect Insurance Agency, Inc., places policies with related and unrelated companies. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Each company has sole financial responsibility for its products. Products, pricing, discounts, benefits, and availability vary by state and may be subject to change. Exclusions apply.

    Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.

    This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.