An umbrella insurance policy is extra liability insurance that provides coverage when other insurance liabilities are maxed out or excluded, according to Geico. Umbrella insurance covers a wide variety of issues, such as damage to property, some personal liability situations, lawsuits and injuries.Continue Reading
An umbrella insurance policy that covers bodily injury liability protects the insured for the cost of damages to another person in situations such as a car accident where the insured is at fault, a guest who is hurt in the insured person's home, and injuries the insured person's pet causes to another person, explains Geico. An umbrella insurance policy also covers instances such as property damage to a school by the insured person's children, property damage by the insured person's pet to another person's property, and damage to a vehicle that is the insured person's fault.
Umbrella insurance can also include coverage in situations such as lawsuits for slander, false arrest or imprisonment, and malicious prosecution, states Geico. Additionally, umbrella insurance can cover an insured person who is being sued for libel, shock or mental anguish, and a variety of other situations. Certain requirements and limitations may apply, and it is best to speak with an insurance agent to understand fully what a specific policy covers.Learn more about Insurance