Personal Umbrella Insurance in Prairie Village, Kansas

When you purchase an insurance policy, such as homeowners or auto insurance, you may think that you are fully covered for anything that could happen. However, that’s not typically the case. Not only do policies have many exclusions, but they also have strict coverage limits. Personal umbrella insurance can be a smart way to obtain additional financial protection.

What Is Personal Umbrella Insurance?

Personal umbrella insurance is a policy that can extend the liability coverage limits of other policies, most often homeowners or auto insurance. When the liability limit of these policies is met, umbrella insurance can help cover the remaining amount. Personal umbrella insurance can be especially beneficial for large claims. Without it, you would have to pay for those extra expenses out of your pocket.

For example, if you are responsible for a car accident that results in $25,000 in property damage, $275,000 in medical expenses, and you are sued for $200,000 in lost wages, your liability would be $500,000. If your auto insurance policy has a liability limit of $300,000, you would be personally responsible for the remaining $200,000. However, if you have a personal umbrella policy, it could cover that $200,000 shortfall, protecting your personal assets from being used to pay the difference.

What Is Covered?

Umbrella insurance can typically help cover the following costs:

• Third-party injuries (e.g., someone gets hurt in an accident you caused)
• Third-party property damage (e.g., you damage someone else’s property)
• Lawsuits involving slander, libel and defamation of character
• Legal defense, even if you’re not found liable

What Is Not Covered?

The following scenarios are typically not covered by personal umbrella insurance:

• Your own injuries
• Damage to your personal property
• Claims related to your business activities (unless you have a commercial umbrella policy)
• Intentional or criminal acts

Learn More

For personal umbrella insurance near you, contact Bovard Insurance Group.