Umbrella insurance is insurance that provides protection beyond the limits (amounts) and coverages (scope) of other policies—and usually extends coverage to all members of your household. Umbrella insurance can provide coverage for defending against lawsuits and paying settlements and court judgments for claims that you or a member of your household caused another person to suffer personal injuries, property damage, or mental anguish—or committed the torts (wrongful acts) of libel, slander, or malicious prosecution against another person.

For example, umbrella insurance may provide coverage when you have exhausted (used) the policy limits of your homeowners insurance, automobile insurance, and watercraft (boat) insurance policies to defend and pay any covered claims.

Umbrella insurance also provides coverage for claims like false arrest, libel, slander, malicious prosecution, and mental anguish that may be excluded by other liability insurance policies—such as homeowners insurance, automobile insurance, and watercraft (boat) insurance.

What Does Umbrella Insurance Cover?

Umbrella insurance provides coverage beyond the limits of your other liability insurance policies, or for claims that may not be covered by your other liability policies. Umbrella insurance generally provides liability coverage for:

• Personal injuries you or members of your household are alleged to have caused others

• Property damage you or members of your household are alleged to have done

• Defending lawsuits involving covered claims

• Landlord liability to tenants and their guests (slip and fall accidents, dog bites)

• Personal liability for false arrest, libel, slander, malicious prosecution, and mental anguish

What Does Umbrella Insurance Usually Not Cover?

An umbrella policy generally does not provide coverage for:

• your injuries or damage to your personal property

• a criminal or intentional act causing injury or damage to someone else

• liability you assume under a contract

• losses related to the operation of your business or damage to your business property

In New York, umbrella insurance is a type of personal liability insurance that supplements the coverage limits and scope of existing policies, such as homeowners, auto, and watercraft insurance. It provides additional protection for individuals and all members of their household against claims that exceed the limits of their primary insurance policies or for certain liabilities that may not be covered by other policies. This includes coverage for allegations of personal injury, property damage, and certain torts like libel, slander, or malicious prosecution. Umbrella insurance in New York also covers the cost of defending lawsuits related to these claims. However, it does not cover personal injuries or property damage to the policyholder, intentional criminal acts, liabilities under contracts, or business-related losses. It's important to note that while umbrella insurance extends coverage broadly, it is not a catch-all policy and exclusions do apply. Policyholders should review their umbrella insurance policy to understand the specific coverages and exclusions that apply to their situation.