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    Home insurance resources

    What is umbrella insurance?

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    Umbrella insurance is a type of insurance that supplies extra coverage to existing insurance policies. It applies to a wide range of claims including injury, property damage, and some lawsuits.

    But how much does umbrella insurance cover and how much does it cost? The answers may surprise you.

    What does umbrella insurance cover?

    Umbrella insurance covers you in cases of personal liability (injury or damage) or lawsuits where standard coverage limits will not cover you. Umbrella insurance typically covers up to $1 million, but additional umbrella coverage can be purchased. The two biggest benefits of umbrella insurance are the broad range of coverage and the amount of coverage you can get for a relatively low cost.

    Here are a few examples of when an umbrella coverage applies and when it does not.

    Umbrella Insurance Covers Umbrella Insurance Does Not Cover
    Injury in or around your home Intentional damage to another person’s home or property
    Libel or slanderous lawsuits Personal belongings
    Your pet causes an injury Contracts
    Legal fees Flood damage
    A severe car accident with serious injuries Criminal actions

    How does umbrella insurance work?

    You can think of umbrella insurance as an extension of your standard insurance. For example, if your home insurance covers you up to $300,000 and you’re sued for $500,000 because someone slipped on your driveway, you must pay the $200,000 difference unless you have umbrella insurance that will give you additional coverage. The main purpose of umbrella insurance is to protect you from paying for unusually expensive damages out of pocket.

    Protect Your Home and Your Finances Against Rainy Days with an Umbrella Policy

    How much does umbrella insurance cost?

    The average price of umbrella insurance ranges between $300 to $700 annually. You can raise your policy’s limits by purchasing endorsements if additional coverage isn’t realistic for you. A Nationwide agent can work with you to figure out a policy that fits your needs. Talk to an agent to find out how much your unique policy could cost.

    What is not covered by umbrella insurance?

    If the policy owner’s property is damaged by another party, then umbrella insurance will not cover them. Umbrella insurance provides personal liability coverage, which exists to protect the insured from paying for damages done to others, not themselves. If damage was done to you, your property, or members of your household, umbrella insurance may not cover it. You have the option of adding uninsured and/or underinsured motorist endorsement to your policy to protect you in the case you or your property are harmed by someone operating a vehicle without any or insufficient liability insurance.

    Additionally, umbrella insurance does not protect against damage to the policy holder’s business property, damages that were inflicted intentionally or criminally, or damages inflicted in a case where liability was assumed by the policy holder under contract.

    Who should have umbrella insurance?

    Umbrella insurance is for anyone who wants peace of mind at a low cost. Umbrella insurance can save you from potentially devastating expenses. And for all of the extra protection it provides, umbrella insurance doesn’t cost a lot to add to your existing policy. From a cost/benefit perspective, it makes sense for just about everyone to have the extra protection of umbrella coverage.

    Is it worth having umbrella insurance?

    Considering the cost-to-coverage ratio and the magnitude of financial burden it can protect you from, the value of umbrella insurance is clear. When you purchase an umbrella policy, you secure your financial future against potentially devastating risks that are often impossible to predict.

    Get an obligation-free quote on umbrella insurance from Nationwide today, and give your future all the protection it deserves.

    Related topics & resources

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    What does landlord insurance cover?
    Does homeowners insurance cover renters?
    Get a homeowners insurance quote
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    Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.

    The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided.