What does personal umbrella insurance entail?

Personal Umbrella Insurance

Rihanna is one of my favorite artists.  She’s smooth with her words, a great singer, and not to mention, quite stunning.  It’s safe to say that I may have a slight girl crush on Rihanna.  Truthfully, who doesn’t?  Now you may be wondering what Rihanna has to do with any of this.  Have you ever heard her song Umbrella?  Personal umbrella insurance is honestly, quite like that song.  “Now that it’s raining more than ever, know that we’ll still have each other, you can stand under my umbrella, you can stand under my umbrella.”  Personal umbrella insurance is a policy to help cover you from claims larger than your policies will cover.  When you must file a claim larger than what your insurance will cover, it seems as though it is raining hard on your life and you do not know what you will do.  Well, step underneath the cover a personal umbrella insurance policy is holding for you, and steer clear of the rain.   

A personal umbrella insurance policy is indispensable when you are liable for claims larger than your existing policies cover, such as homeowner’s insurance policy or auto insurance policy.  For example, if you were to get into a car accident with a surgeon and they injure their hands, your lawsuit will be quite large as their career and normal income are at jeopardy.   

Personal umbrella insurance can also cover additional instances that homeowner’s insurance or auto insurance does not cover such as: 

  • Libel – published false statement that is damaging to one’s reputation; written defamation. 
  • Slander – false spoken statement damaging to one’s reputation; spoken defamation. 
  • False imprisonment – being imprisoned without legal authority.  

Just like any insurance policy, there are underlying limits to a personal umbrella policy.  

  • Damage to your own property.  Personal umbrella insurance is a liability policy, meaning it will only cover you if you are responsible for damage to someone else’s property.  
  • Damage that you or a covered member of your household caused on purpose.  Almost any insurance policy does not cover incidents that were purposeful such as physical damage to someone or their property.  
  • Liability incurred in business or professional activities.  These would be covered under business liability insurance.  
  • Liability you agreed to assume under a written and signed contract.  
  • Liability related to war or armed conflicts.  Unfortunately, there isn’t an insurance policy that covers damages done by war-acts as the financial losses incurred are usually far too high for insurance companies to assist. 


Source: How Umbrella Insurance Works (investopedia.com)

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Vero Insurance is a niche broker with a focus on providing insurance placement and risk management services to high-income families. Here at Vero, we love to provide you with exciting and fun articles to learn more about insurance and how it impacts your life. Visit our other blogs to find more information.

While Vero does offer a wide variety of personal insurance coverages, our main coverages include: personal umbrella insuranceauto insurance, and homeowner’s insurance. To find the best coverages for you and your family, use the contact form below so you can be at ease knowing you’re covered.