Should landlords have umbrella insurance?

What is a personal umbrella policy?

Umbrella insurance, sometimes referred to as personal liability insurance, is an option type of insurance that gives additional liability protection beyond the limits of your current policies. This can include

• Homeowners insurance
• Car insurance
• Boat and watercraft insurance

Let's say you're a property owner. While having a party someone is hurt. In this case you coul be legally responsible. If the damages are more than the liability limits of your property insurance, an umbrella policy can help pay the difference. If needed, it can also help with legal bills.

What liabilities are associated with being a landlord?

A landlord can be held responsible for a number of things. Common examples are

• A tenant is injured after falling on a broken stair in a common area maintained by the landlord.
• A landlord fails to tell tenants to use an alternate staircase while repairs are being made to a broken handrail.
• A landlord fails to eliminate a potentially dangerous condition, like an uneven floor.
• A landlord is accused of entering a tenant's residence that results in a dispute.

What are the main benefits of landlords having umbrella insurance?

There are many benefits to landlords having an umbrella policy. Some benefits are an umbrella policy helps provide landlords with

• Additional financial protection if a liability lawsuit exceeds the existing landlord policy limits
• Legal defense costs if a tenant files a lawsuit
• Protection for libel or slander (ex., a dispute with a tenant leads to a claim)
• Peace of mind for unforeseen liability lawsuits

Let's use an example of when umbrella coverage would kick-in. Your tenant slips on ice and needs medical attention. The medical bills are more than your landlord policy limit. Here your umbrella policy can help cover the costs. It can also help with any expenses if you're taken to court.

What are the main risks of a landlord not having an umbrella policy?

The main riske of not having an umbrella poicy is financial. Like other insurance, each policy is build to provide you with a specific amount of coverage. If a claim is brought and you owe more than the limit, you may be stuck having to pay out of pocket. If you don't have the money to pay, you may risk losing other assets like your cars, home, etc. With an umbrella policy, you can help give yourself extra protection.

How much does an umbrella policy for landlords cost?

It depends. Everyone's situation is different which come with wants and needs. For example, a landlord that rents a single-family home in a suburb, may be different than someone that rents out multiple luxury beach houses. In either situation, an umbrella policy can be an important part of any landlord's insurance needs.

In general, umbrella policies can be quite affordable. You may even qualify for a Multi-Policy Discount if you insure multiple products with a company like Liberty Mutual.

Learn more about umbrella insurance at or call use at 888-498-2145 to start your quote.