What Does Umbrella Insurance Cover?

An umbrella policy provides additional liability coverage for auto and homeowners insurance policyholders. It can cover bodily injury and property damage liability above the limits of an auto or homeowners policy.

It supplements your auto and homeowners policy coverages

Bodily Injury Liability

In an auto insurance policy, bodily injury coverage helps pay for the claims and lawsuits filed against you by people injured in an accident. In a homeowners insurance policy, bodily injury coverage helps pay for lawsuits brought by people injured on your property and in your home.

Property Damage Liability

In an auto insurance policy, property damage coverage helps pay for the cost to repair or replace another car or object damaged in an accident you caused. In a homeowners insurance policy, your property damage coverage helps pay for the cost to repair or replace items, not owned by you, that you damaged.

For a covered liability claim, your policy will pay a money judgment, up to your liability policy limits, to compensate the property’s owner as well as a defense by counsel of the insurer’s choice, even if the suit is groundless, false or fraudulent.

Does umbrella offer additional protection?

Yes! An umbrella policy typically provides personal injury liability, which is not always covered under auto or homeowners insurance policies. Personal injury can include damages resulting from:

  • False arrest, detention, or imprisonment
  • Wrongful entry or eviction
  • Invasion of privacy
  • Malicious prosecution
  • Libel, slander, or defamation of character

What exclusions apply?

Exclusions can include:

  • Intentional injuries
  • Business property and pursuits and professional services
  • The ownership, maintenance, or use of aircraft, watercraft, or recreational vehicles
  • The transmission of communicable diseases
  • Damage to your or your resident family members’ property

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.