The Truth about Umbrella Insurance

Umbrella insurance is a form of liability insurance designed to supplement basic liability policies, such as homeowner’s, renter’s, and auto insurance. An umbrella policy will cover a much larger limit, and go above and beyond the claims relating directly to your home and auto policies. The main purpose of such a policy is to protect your many assets from any unpredicted event, such as a serious car accident in which you find yourself held liable for damages or bodily injuries to other motorists.


An umbrella insurance policy will provide additional coverage, otherwise known as excess liability, beyond the limits of your traditional and basic policies. It is additional protection from property damage liability claims and bodily harm liability claims. These are also designed to provide a broader range of coverage to cover the cost of legal fees, improper arrest, libel, and slander as they occur in your case.

Using It

Your umbrella insurance will come into play the moment you are found liable and must give out damages, or if you find yourself sued and must pay for legal defense. Even if the result is that you are not found responsible, you will be covered under this insurance policy. However, this will only pay out if your basic insurance limits are reached and exceeded, or if the claim is excluded from your basic coverage and thus not something from which you are protected.

The wronged party will place a claim against you, the policyholder, and then your insurance company may pay the settlement amount up to the limitations of your coverage. If the settlement is exceeding the amount of your limit, you are then left responsible for paying the remaining amount out of pocket. To get started, you should take the time to visit website or call 617-472-8100 to speak with a Dailey Tax & Insurance, Inc. representative that will more than happy to help you work through your options. You can also visit them on Facebook for regular updates.

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