Is There Anything Umbrella Insurance Does Not Cover?

Nothing beats an umbrella policy for extra peace of mind and an additional layer of financial protection. In short, an umbrella policy offers a security blanket of additional liability coverage should your existing liability for policies like an auto, boat, RV, or homeowners policy be exhausted due to a covered incident. For example, if you are in an auto accident that injures another person and your policy liability limit is $100,000, you’ll be on the hook for any overages. However, with umbrella insurance, the policy will pay out additional liability coverage to the max limit selected so that you don’t have to worry about any out-of-pocket expenses. If you have significant wealth, own multiple properties, have children, have pets, or any other circumstances, an umbrella insurance policy can be the difference between financial ruin and a massive sigh of relief. 

With that said, umbrella insurance does have a few exclusions that void a potential payout from the insurance provider. Umbrella insurance does not cover any of the following circumstances:

  • Injuries or property damage that occur to you or your belongings
  • Damage that is caused while you are committing a criminal act
  • Damage or injuries that you cause while operating a business or performing a professional activity
  • Property damage or injuries caused by anything excluded from your policy, such as specific dog breeds or recreational vehicles

To learn more about umbrella insurance and if it makes sense for you, contact the High Favor Insurance team in Birmingham, MI for additional information. As industry leaders in the insurance field, we are well-positioned to answer your questions and help you choose a policy that best meets your needs.