What is not covered under an umbrella insurance policy?

Liability insurance offers financial protection for you and your family should a significant event – like a legal matter caused by an automobile accident, occur. However, what happens when the damages exceed your auto insurance policy’s limits? The insurance professionals at Wayne Realty & Insurance Co Inc., which serves the greater Goldsboro, NC area, can help provide additional liability protection with an umbrella insurance policy.

What is Umbrella Insurance?

When used in an insurance context, the term umbrella describes a type of policy that offers coverage to the insured on a broader basis than their existing underlying policies. However, umbrella insurance (or excess liability insurance) does not provide protection for all events and situations.

What is Not Covered By Umbrella Insurance?

An insurer will list ineligible exposures, those events and circumstances that would preclude the insured from coverage –

  • Your injuries.
  • Damage to personal belongings.
  • Intentional/criminal actions or anything detailed in the underlying policy’s exclusions.
  • Certain property damage or injuries, for example, an event with an uncovered dog breed.
  • Damage/injuries to others for which your business is responsible, you will need a separate and distinct business umbrella policy. For instance, a home daycare would be covered under the business umbrella policy, not the homeowner’s insurance coverage.

In other words, an umbrella insurance policy will not reimburse you for your own costs as it is designed to cover expenses if someone sues you for damages and the event that caused the damage is determined to be your fault.  

Contact a Leading Insurance Company in Goldsboro, NC Today

For additional information regarding what is and is not covered by an umbrella policy, contact Wayne Realty & Insurance Co Inc. at 919-735-1341 or online