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Umbrella Insurance

An Umbrella insurance policy is critical to keeping your financial future secure, but not everyone knows what an Umbrella policy is. The article below will cover exactly what an Umbrella policy is and why you need one.

What Is an Umbrella Policy?

Wikipedia defines umbrella policies as a type of liability insurance that goes outside the scope of other types of insurance policies (hence the term “umbrella.”) It is usually used as supplementary insurance for an existing policy, but it can also be used as a primary insurance policy. The following are examples of different types of damages that this type of policy will usually cover:

  • False arrest
  • Slander
  • Invasion of privacy
  • Libel
  • Injuries occurring on your property
  • Damage to other peoples’ property
  • Examples of How Umbrella Policies Protect You

Whether you’re a home or business owner, rent a house or own a car, Umbrella policies are absolutely essential if you want to protect your assets and your future because these policies limit the type of lawsuits that can be filed against you. For example, most types of insurance may not cover personal liability issues such as slander, false arrest or libel, whereas you would be protected from all three with an Umbrella policy.

Let’s also say you’re a landlord, and the dog of one of your tenants bites another person while on their property. You can be held liable in this situation because you own the house, and some homeowner’s policies may not cover this type of situation. On the other hand, with an Umbrella policy, you will be protected.


As you can see, there are many situations in which having an Umbrella policy can be a great benefit to you. This type of policy will protect your assets and safeguard your financial future by providing you protection you cannot get with other policies.