Why Do I Need A Personal Umbrella Insurance Policy

What is an umbrella policy

Umbrella Insurance Protection

The Value of a Personal Liability Umbrella Policy

To really feel secure about protecting your assets and your future, you may need the extra level of protection provided by a personal umbrella liability insurance policy.

You might surprised at the number of people that already have one.

Protection for life’s uncertain moments

One of the most certain things in life is, certainly, uncertainty. Your dog could bite the neighbor’s kid. Your teen driver could hit a cyclist. A guest could fall down your stairs. A rainy morning commute on worn-out tires could result in a multi-car accident. And you could be held liable to others for the cost of damages – injuries, property destruction, emotional distress, lost wages and more.

Good thing you have insurance. But, wait, your policy covers $300,000 of liability, and, in a lawsuit, you’re judged liable for $1 million. That leaves $700,000 left to pay. How will you cover it?

If you have umbrella insurance and your policy covers the incident, the additional $700,000 will come from your policy. If not, it will come from the assets you have now, such as your home and savings, and from future assets, such as your wages or inheritance.

The fact is, it only takes one serious accident and a resulting lawsuit to put everything you own – and will own – at risk. And it only takes one umbrella policy to help protect it all.

How does a Personal Umbrella Liability Policy Work?

An umbrella policy can provide an additional layer of liability protection that can be used with your current policy or a policy from another insurance company, including policies that cover watercraft, motorcycles and recreational vehicles. It kicks in when the underlying or primary policy doesn’t provide sufficient liability protection. A $1 million umbrella policy, in many cases, is less than $200 a year. It also provides all family members of the household with worldwide liability protection.

CALCULATOR: How Much Umbrella Insurance Do I Need?

Here are a few things you should know about a Personal liability umbrella policy:

  • Personal umbrella policies typically offer $1, $2, $3, $4 or $5 million of liability coverage. Consider your net worth when choosing your coverage – you could be sued for everything you have.
  • An umbrella policy is not a stand-alone policy. Your insurance carrier will typically require you to meet certain qualifications, such as having an auto policy with a certain level of liability coverage, in order to purchase umbrella insurance.
  • Even when you have umbrella insurance, your car or home insurance is your first line of defense. For example, if you are liable for $2 million in a car accident and your auto insurance covers $500,000 of liability, your auto policy covers the first $500,000. Your umbrella policy covers the remaining $1.5 million, assuming your policy covers the incident and that you purchased that much coverage. If you are liable for $250,000 in an accident on your property and your homeowners insurance covers $300,000, your umbrella policy won’t be needed.
  • A single umbrella policy typically covers all of your family members who are residents of your household and while traveling anywhere in the world. For example, your auto policy may not cover you while driving in a foreign country, but your umbrella policy will.
  • Legal defense fees, which could add up to thousands of dollars, are also covered, win or lose, for all claims covered by your personal umbrella policy and not covered by your underlying insurance policy.

So again, an umbrella policy gives you excess liability coverage on top of what your other policies provide. If you’re at fault for a serious accident, you’ll need it.

What’s Peace of Mind Worth to You?

An umbrella policy provides additional layers of liability protection. If the liability limits are exhausted on your home, auto, or other underlying insurance policy, your umbrella insurance policy takes over and provides you with additional protection. The cost is minimal compared to the comfort of knowing you’re covered.

Do You Have Enough Liability Insurance?

Imagine what would happen if your dog was to bite a neighbor’s child, or if there was an accident on your rental property. What would happen if a fire in your condo spread to other units? If any of these things happened to you, there’s a good chance your current liability limits wouldn’t be adequate to protect your assets, or your future earnings.

Liability Insurance Starts When the Others Stop

Once the liability limits are exhausted on your home, auto, or other policy, your umbrella policy takes over and provides a second layer of protection of at least $1,000,000. Higher limits may also be available. Talk with Insurance Brokers Group to determine the right amount of coverage for your needs.

Broad Insurance Coverages With Personal Umbrella Policy

An umbrella insurance policy also pays some claims not covered by your home, auto, or other underlying insurance. The policy covers not just you, but your spouse and all family members living in your household, anywhere in the world. Legal defense fees are also paid.

The right coverage for you is unique – talk to Insurance Brokers Group today to find out how to protect yourself, your family and your future with the right personal umbrella insurance for you. Just call 800-459-6060 to speak with one of our agents and determine the right coverage for you.

If you’re curious about how umbrella insurance might play a role in protecting the life you’ve built or plan to build, the brokers at Insurance Brokers Group would be happy to help answer any of your questions and guide you to the coverage that’s right for you.  

For more information on personal umbrella insurance or to receive quotes call 314-569-1010 

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