Umbrella Insurance in Rhode Island

Experts break down umbrella insurance costs, coverage, companies, and more in Rhode Island.

Ann Herro, Insurance Expert Written by Ann Herro
Ann Herro, Insurance Expert
Written by Ann Herro

Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Luxury House on the water. Find Rhode Island umbrella insurance.

Liability insurance is an essential part of your personal insurance program. It protects you when you or a covered family member harms someone else. It covers medical bills, the cost to repair or replace damaged property, and your legal fees if someone sues you. All home and auto insurance policies in Rhode Island will include liability coverage.

But what if you're faced with that once-in-a-lifetime lawsuit where the settlement or judgment would exceed the limits of the liability coverage in your applicable home or auto policy? Umbrella insurance is one of the few ways to help yourself in these situations rather than facing financial ruin.

Umbrella insurance can help you bridge the gap between your basic personal insurance policies and a million-dollar judgment against you. An independent insurance agent in Rhode Island can help you find umbrella insurance that fits your needs and budget.

What Is Umbrella Insurance?

If you or one of your family members causes a car accident, or if someone is injured at your home, your liability insurance pays for medical bills for the injured party or for repairing or replacing someone else’s property. It even pays for attorney fees, court costs, and any financial settlements or judgments you have to pay if someone sues you.

Your home and auto insurance coverage limits are specified in the policies. If you’re sued, your policy limits may not be sufficient to cover a large financial settlement.

Umbrella insurance in Rhode Island offers excess liability coverage that kicks in when the limits of an underlying policy—including homeowners insurance, renters insurance, condominium insurance, or auto insurance—have been exhausted.

What Does Umbrella Insurance Cover in Rhode Island?

Umbrella insurance in Rhode Island typically covers the following types of claims for any person that is covered under the primary insurance (auto, home, etc.):

  • Property damage liability
  • Personal injury
  • Advertising injury
  • Libel
  • Slander
  • Defamation of character
  • False arrest, detention, or imprisonment
  • Mental anguish
  • Malicious prosecution

Umbrella policies usually provide "follow form coverage." This means that the umbrella policy typically covers what the underlying policy does. What's more, umbrella insurance may cover you worldwide, something the underlying home and auto policies will not. A few circumstances that the underlying policy does not cover, such as claims for libel, slander, and false imprisonment, will also likely be covered by your umbrella policy.


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Who Needs Umbrella Insurance in Rhode Island?

Does everyone in Rhode Island need an umbrella policy? Certain lifestyle factors or activities you pursue can increase the likelihood of being the target of a lawsuit and increase your need for umbrella insurance. For example, you might be more likely to be sued if you:

  • Own a home
  • Own a rental property
  • Have a trampoline, pool, or hot tub
  • Host large parties
  • Have a teenage driver
  • Own a dog
  • Own a large home

Anyone with significant assets or an obvious “attractive nuisance” (e.g., a pool or a trampoline) should talk to their independent insurance agent about the need for umbrella insurance in Rhode Island.

But remember, anyone can sue you for any reason, and million-dollar awards in personal injury cases are not uncommon. Consider your ability to pay such a judgment when deciding if you need umbrella insurance.

How Much Umbrella Insurance Do I Need in Rhode Island?

Umbrella insurance is typically sold in million-dollar increments, such as $1 million, $2 million, or $5 million. An independent insurance agent can help you determine how much coverage you need by working with you to assess your net worth, which includes all of your assets and liabilities, and evaluate your current liability coverage for your home and your vehicles. Your age, profession, ZIP Code, and other personal characteristics will be factored into the amount of umbrella coverage ideal for your needs.

It's necessary to have both home and auto insurance in Rhode Island to purchase umbrella insurance. The state does not set eligibility requirements for purchasing umbrella insurance. But you will need to have a certain level of underlying home and auto insurance as required by the insurance company selling the umbrella policy.

Can You Deduct Umbrella Insurance on Your Taxes in Rhode Island?

Personal umbrella insurance premiums are not usually deductible from your taxes in Rhode Island. You may be able to deduct a portion of your premiums as a business expense if you own rental properties that are covered along with other personal assets under one personal umbrella policy.

Your premiums may be tax-deductible if you own a business and have a business umbrella policy that supplements your other business liability policies.

What Are the Best Umbrella Insurance Companies in Rhode Island?

It can be simple to find the best umbrella insurance companies in Rhode Island. A local independent insurance agent can help you get umbrella insurance quotes from multiple insurance companies so that you can select the best policy for your needs and budget.

Why Shop Umbrella Insurance with a Rhode Island Independent Insurance Agent?

Instead of getting an online quote, find an independent insurance agent now, and get a one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.  

What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.

Contact an agent today for a free, no-obligation consultation.

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