The majority of homeowners are aware that their home insurance protects them from some of life’s calamities. Your liability coverage will provide some protection if a visitor trips over a loose rug or falls down your steps. However, home insurance only covers so much. You’ll need something additional to shield yourself against liability for accident or harm both inside and outside the house: personal umbrella coverage.

What You Should Know

Whether you’re in your driveway or the parking lot of the local movie theater, umbrella coverage protects you from liability on and off your property. It also provides a safety net in the event that a lawsuit is filed that exceeds the limits of your ordinary coverage.

Consider what would happen if a neighbor fell off your cold porch and broke their hip, necessitating surgery and a $500k hospital stay. If you have $250,000 in your homeowners policy and are sued for $500,000 and lose the case, your umbrella insurance comes in to cover the difference.

Other Areas of Coverage

Personal umbrella coverage can save not only your current assets but also safeguard your future earnings. Because if you lose a court case, your future earnings could be garnished.

An umbrella policy might cover you if you’re sued for:

  • Accidents on your rental property (for example, a lawsuit stemming from a dog bite by your tenant’s canine)
  • Vindictive prosecution
  • Arrest without cause
  • Libel and slander
  • Shock or mental anguish

Having personal umbrella coverage can give you much-needed peace of mind.