Extra protection for life’s unexpected moments
When it comes to protecting your assets, standard insurance policies like auto or homeowners can only go so far. That’s where umbrella insurance steps in — providing an extra layer of liability coverage beyond the limits of your existing policies.
What is umbrella insurance?
Umbrella insurance is a type of personal liability insurance designed to protect you from major claims and lawsuits. It kicks in when the liability limits on your other policies (such as auto, homeowners, or renters insurance) have been exhausted. This policy isn’t just for the wealthy — it’s for anyone who wants peace of mind knowing they’re protected against large, unexpected financial burdens.
What does umbrella insurance cover?
- Injuries: If someone is injured on your property or in an accident you cause, umbrella insurance can help cover their medical bills and legal fees.
- Property damage: It covers damage you cause to another person’s property that exceeds your base policy’s limits.
- Personal liability: It can protect you from claims like libel, slander, defamation, and false arrest.
- Legal defense: Even if you’re not at fault, umbrella insurance helps cover your legal costs in a lawsuit.
When does umbrella insurance apply?
Example: If you cause a serious car accident and are held liable for $600,000 in damages, but your auto insurance only covers $300,000, your umbrella policy could cover the remaining $300,000 — protecting your home, savings, and other assets.
Who needs umbrella insurance?
Umbrella insurance is a smart choice if:
- You own property or rental units
- You have savings or investments you want to protect
- You drive frequently
- You host guests at your home
- You have teenage drivers in the household
- You want added protection in today’s litigious society
How much coverage is available?
Umbrella policies typically start at $1 million in coverage and can go up in $1 million increments. Despite offering high limits, umbrella policies are generally affordable because they only apply after your primary policies are exhausted.
Is it worth it?
A single accident or lawsuit could put your financial future at risk. Umbrella insurance gives you extended protection, often at a low cost — making it a valuable part of a well-rounded risk management plan.