If you’re responsible for an auto accident, car insurance provides coverage for damages and injuries experienced by all parties. If someone is harmed on your property, a homeowners policy can cover liability suits. However, these don’t always provide enough funds to pay the full costs of some claims. Umbrella insurance can be used to address any remaining expenses to ensure your family isn’t left in a serious financial bind. Use the following guide to shed more light on this type of personal liability coverage.

A Guide to Umbrella Insurance & Personal Liability

What’s Covered by Umbrella Policies?

This type of insurance provides funds to cover excessive costs associated with liability claims and expenses related to personal injury and property damage. These costs can stem from a variety of situations, whether you cause a car crash that totals a luxury vehicle or an accident occurs at your home resulting in someone’s death.

Depending on the specific policy terms, umbrella coverage can also offer protection from situations involving defamation claims and false imprisonment. These plans will also cover legal fees associated with the lawsuit, such as attorney fees and court costs. Payouts from umbrella insurance only occur after the coverage limits from other policies are exhausted.

What Isn’t Covered?

insuranceUmbrella insurance is designed to extend personal liability protection, but it won’t cover property damage or injury costs caused or sustained by you or anyone in your household. For a claim to be valid, the incident has to be the result of negligence. You would not receive a payout if the damages caused were intentional.

Who Would Benefit From an Umbrella Policy?

Although umbrella insurance can benefit any individuals who own property, it is particularly advantageous for those who may face a higher risk of a liability lawsuit. This could include real estate and rental property owners, public figures, children’s sports team coaches, and those who regularly host parties. You can also face costly liability suits if you own a gun, swimming pool, or dog.

This coverage is also ideal for those who have significant assets, such as savings accounts or investment portfolios. Without an umbrella policy, these funds may be used to pay for any excessive expenses related to personal liability settlements.


If you’re concerned about your coverage limits, talk to the experts at Reed Brothers Insurance. This team of agents serves individual and commercial clients throughout Lexington, KY, and the surrounding counties. They will review your assets and risks to determine if you need additional umbrella coverage to protect against losses. This independent insurance company also offers plans from many nationally recognized providers, allowing you to find the best price and terms for your situation and budget. Visit the agency online to learn more about their products, or call (859) 253-2728 to start comparing options with a friendly insurance agent.