Does Umbrella Insurance Cover Everyone in My Household?

Umbrella insurance protects us when an accident results in liabilities that exceed the limits of our home, auto, or other insurance policies. While umbrella policies cover everyone in the policyholder’s household, the details can be complicated. We recommend discussing your umbrella coverage and needs with an insurance agent such as those on the Hamilton Fox & Company Inc. team serving Pinecrest, FL. 

Covering Household Members

Umbrella insurance kicks in when the liability exceeds the limits of other policies. While uncommon, these situations can result in insurance companies paying substantial amounts to the injured parties. This requires insurance companies to account for everyone covered by your home or auto policies. Like an auto policy that covers all household members with premiums adjusted based on household makeup and vehicles, insurers must adequately account for everyone covered under their umbrella policies. 

That means umbrella policies typically do not cover household members covered under separate policies. Examples include adult children or the policyholder’s parents who live in the house but have their own auto policies. Similarly, a child with a college apartment renters’ policy may not get covered by the umbrella policy. In some situations, the umbrella policy may cover these circumstances, with the premiums adjusted based on the liability limits of the separate policies.

Confirming your policy details with your agent while shopping for insurance and before making a claim is a good idea.

Working With Hamilton Fox & Company Inc.

Each situation is unique, so we recommend reviewing your circumstances with your agent. If you live in or near Pinecrest, FL, call or stop in today at Hamilton Fox & Company Inc. Our team can help you with your umbrella and general insurance needs.