An umbrella insurance policy doesn't cover property damage. Why not? Property insurance is a general type of insurance coverage that protects against financial loss caused by property damage, theft, or vandalism. It is not a type of liability insurance. Where liability insurance protects you financially when you bring unintentional harm to another person, property insurance protects you from harm against your own property.
For example, lightning strikes your home, and part of the attic catches on fire. By the time the fire department has everything under control, your home has sustained significant fire and smoke damage, in addition to water damage from the hoses. Once you pay the deductible, property insurance will pay for the remaining damages up to your policy limit.
Your property insurance agent will set the limit based on the value of what you want to insure. You can take out property insurance on any of your belongings, including watercraft, aircraft, your home, car, and real estate property. If you are insuring a shed, for example, the limit will be set at the value of the shed. If a tornado completely destroys the shed the property insurance company will cover the value of the shed, as determined in your contract, once you pay the deductible.
Umbrella insurance does not apply to property insurance because umbrella insurance is a type of excess liability insurance, providing protection against lawsuits rather than damage.
Umbrella Insurance Directory