Does an Umbrella Policy Cover Personal Events?
Understanding an umbrella insurance
An umbrella policy provides additional coverage above the liability limits of your auto and homeowners insurance policies. Generally, you must maintain a minimum liability limit on both your auto and homeowners policies to qualify for an umbrella policy.
Umbrella policies also cover certain claims not covered by homeowners and auto policies, such as libel, slander, or defamation of character.
Coverage for personal events
Hosting a wedding or large party on your property can expose you to liability and damages. An umbrella insurance policy can help cover the expenses of either incident or several other scenarios.
- Bodily Injury:
Bodily injury coverage helps pay for lawsuits filed by people injured on your property and home.
- Property Damage:
Property damage coverage helps pay for the cost of repairing or replacing damaged items not owned by you.
- Legal Fees:
An umbrella policy can help pay for legal expenses (attorney and court fees) and damages if you are accused of slander (spoken word) or libel (written word).
- Exclusions:
Common exclusions include intentional injuries; breach of contract; ownership, maintenance, or use of aircraft, watercraft, or recreational vehicles; transmitting communicable diseases; and damage to your or your resident family members’ property.
Conclusion
An umbrella insurance policy provides extra liability coverage and legal defense over your homeowners policy limit to help protect your most valuable assets (home, 401K, pension) should you be required to pay significant medical bills or defend a lawsuit resulting from an event on your property.