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Umbrella Insurance: Coverage for a Rainy Day

As a property owner, you’ve got liability coverage, but sometimes that isn’t enough. With sky-high judgments being awarded nowadays, even with insurance you can still lose everything. And what about events that aren’t covered under your liability insurance? If you’ve got significant assets that need protection, then you may want to get an umbrella New York insurance policy.

How it Works

Umbrella insurance policies protect against catastrophic damage and losses by providing coverage above and beyond that of standard liability insurance. Specifically, it does three things: it drops down when an underlying policy’s aggregate limits have been reached, it covers claims not covered by the underlying policies, and it can be applied to multiple underlying liability policies. For instance, say your liability insurance covered you up to $100,000, and you were sued and held liable for $500,000 for an injury that occurred on your property. Your umbrella insurance would cover the remaining $400,000, including associated legal fees.

What’s Covered

Some coverages provided by an umbrella New York insurance policy include:

  • Injuries or property damage you cause in an auto accident
  • Injuries or property damage caused by your dog
  • Injuries sustained by a guest or neighbor in your home or yard
  • Libel, slander, and false arrest

If you need more protection than your primary insurance provides, umbrella insurance may be just what you’re looking for.