Umbrella insurance in New York is additional liability insurance that covers claims above the limits of existing car and home liability policies. It only kicks in after those policies' limits have been exhausted, providing an extra layer of protection.
For example, if the bodily injury liability coverage limit on your car insurance policy is $250,000 per accident, but you cause a pileup that results in $300,000 in medical expenses for the other drivers and their passengers, umbrella insurance would cover the remaining $50,000.
What Umbrella Insurance Covers in New York
- Bodily injury liability in excess of auto/home insurance policy limits
- Property damage liability in excess of auto/home insurance policy limits
- Legal defense costs related to liability claims
- Libel and slander
- Malicious prosecution
- Psychological harm and mental anguish
- Liabilities when traveling overseas
- False arrest
In New York, umbrella insurance will extend coverage to other members of your household, such as your spouse, kids, and relatives living with you who do not have a car or home in their own name. It will also provide protection for certain claims that are not covered by the underlying insurance, like claims for slander and libel.
To learn more, check out WalletHub's guide to umbrella insurance.
This answer was last updated on 05/30/24 and it was first published on 07/11/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
