Does umbrella insurance cover intentional acts?

No, umbrella policies exclude intentional or criminal acts, business activities, and contractual liabilities.

Umbrella insurance is designed to provide extra liability coverage beyond the standard limits of your homeowner's, auto, or watercraft insurance policies. However, this type of policy is primarily meant to protect against unforeseen events and accidents that could potentially result in legal action against you. Therefore, it does not cover intentional or criminal acts, meaning if an individual was to intentionally cause harm to another person or their property, or commit a crime, the umbrella policy would not provide coverage for any resulting liability. This exclusion exists because insurance is fundamentally a mechanism to manage risk and uncertainty, not to cover deliberate misconduct or illegal activities. Similarly, umbrella policies also generally exclude coverage for business activities, as these require specialized commercial insurance products, and contractual liabilities, which are obligations or risks taken on through specific contracts that aren't covered by personal liability insurance ideas.

Imagine John, who has an umbrella insurance policy, gets into an argument with his neighbor and, in anger, decides to throw a rock through the neighbor's window. The neighbor could sue John for the damages. Since John's act of throwing the rock was intentional, his umbrella insurance would not cover the cost of the damages or any legal fees incurred from the lawsuit. Conversely, if John's tree in his yard fell during a storm and broke his neighbor's window, his umbrella policy could provide additional coverage for any liability beyond what his homeowners insurance covers, since this event was accidental and not intentional.

While umbrella insurance is a wise choice for additional liability protection, never assume it covers everything. Always be mindful of the exclusions, particularly the fact that it does not cover intentional acts. If you're involved in activities that could lead to liabilities, such as volunteering or serving on a board, make sure they're covered under your policy. It's also prudent to consult with your insurance agent to understand what is and isn't covered and consider additional policies if you think you might need further protection beyond what an umbrella policy offers.