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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

Learn more about NJM Umbrella Insurance, or explore other insurance topics in Ask NJM.

The content on this page is intended for informational purposes only. It is not an insurance policy, and does not, in any way, replace or modify the definitions and information contained in individual insurance policies. Terms and coverage availability may vary by state, and exclusions and deductibles may apply. Discounts also vary by state and may not be applied to all policy coverages. Coverage for an accident or loss is subject to the terms and conditions of the insurance policy applicable to a particular claim.