Umbrella policies are an extra policy that covers over and above your homeowner and/or automobile insurance coverages. But some people think that they are all risk and all peril policies that cover any possible situation that you might run across. While they do cover many things, there are some situations that are not covered.
So what is not covered? The answer may surprise you.
1. Intentional Damages: If you intentionally damage someones property, or intentionally injure someone, you are usually not covered. Most of these policies specifically exclude anything that can be classified as intentional damage.
2. Exotic Vehicle Liability: While snowmobiles and golf carts are usually covered, others are not. If you own, are injured on or have someone injured on your; jet-ski, personal aircraft, hovercraft or para-sender, you are probably not going to be covered. You need to ask your insurance agent about specific coverage for these exotic situations.
3. Damages To Your Own Property: Damages to your own property are not covered by most umbrella policies. Depending on how the damages happen, you may be covered by your homeowners, auto or the policies of those that damaged your property.
4. Business Related Activities: If you run a side business out of your home and someone gets injured while participating in your business activity, these situations are usually excluded from a personal liability umbrella. You need to look into a business liability umbrella to cover any business activities.
5. Workers On Your Property: If you have a house cleaner, maid, handyman or landscaper that does work on your property, they are usually not covered under your umbrella if they are injured while performing any services for you. These casual workers should be carrying their own insurance coverage for such situations and you should make sure they have it.
Summary: Feeling the sense of security that an umbrella policy provides is something that most insurance agents are very quick to tell you about when they are trying to sell you a new policy. Make sure that you ask about any specific situations that you feel are relevant to your personal situation. If they cannot give you concrete written proof that these items will be covered, you should expect that they are not.
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