What is Umbrella Insurance? Umbrella insurance provides excess liability insurance coverage that goes beyond the limits of the your homeowners or auto insurance policies. It offers additional protection in the event that you are sued for property damage or injuries. It also protects against libel, vandalism, and slander. The following explains how umbrella insurance works. Is umbrella insurance necessary? It’s important to first understand what is covered by standard homeowners and auto policies as well as the potential benefits of umbrella policy. The following may help you decide if umbrella insurance is appropriate for you.

Updated January 31, 2020 at 4:15 p.m. Protect Your Most Valuable Belongings If you own your home (or have a renters policy), you might be surprised to learn that your standard homeowner's insurance policy doesn't cover the total loss of your most expensive possessions. Most homeowners' policies offer limited coverage for personal items such as jewelry, musical instruments, sporting equipment, cameras, and computers.   Standard Homeowners Insurance Does Not Fully Cover Expensive Jewelry & Valuable Items Standard homeowners and renters insurance policies include coverage for personal possessions such as jewelry, but many policies limit the dollar amount for theft of…

You may think that a homeowners insurance policy provides adequate coverage for all your valuables, but policies may provide limited or no coverage for certain items — including generally expensive items — that are damaged or stolen. For example, many homeowners policies generally have a $1,000 or $1,500 coverage amount for jewelry if the loss is due to theft. Such limits are in place to help keep homeowners policies affordable. However, if jewelry valued at $2,000 is stolen from your home and you have a $1,000 policy limit, you can only receive $1,000 from your insurer to replace the missing items. That is when…