What does an umbrella policy cover?

Personal umbrella policies, what are they,
and what do they cover?

What does an umbrella policy cover? An umbrella policy is going to cover your liability that

you're found liable for to another
person. It's going to do that on top of

your underlying policies, and an
underlying policy would be like your

homeowners insurance auto insurance ATV,
snowmobile, boat, perhaps you have a

rental property. So after you exhaust the
limits of liability on those policies

your umbrella policy will kick in.
Umbrella policies generally are sold in

million dollar increments. They
generally start off at 1 million you can

go up to 5 million or perhaps even 10
million depending on the carrier.  If you

carry $500,000 of  liability
limits on your home and then you have a

million dollar umbrella policy you would essentially

have $1.5 million dollars of coverage
from your carrier. The same would also be

true on your other policies if you carry
$500,000 liability limits on your auto

RV, ATV policy and then you've got
another million dollars you would have

the $1.5 million on all your policies. So
to summarize your umbrella policy is

going to cover you in the event that
you're found liable and you have

exhausted your underlying limits. One
thing to keep in mind is your insurance

carrier will probably require you to
carry certain limits and you'll want to

make sure that you talk with an
insurance agent that you've met those

underlying insurance liability limits to
make sure you are properly covered.

Give us a call at Clark Carroll insurance
agency at 815-244-1570

and we can review
your umbrella policy questions