“An umbrella insurance policy is the absolute best buy in the insurance business.”1
Sometimes things go wrong – a car accident, a guest slips and falls on your property, a lawsuit. If you don’t have the right coverage, an unfortunate situation can compromise your financial security.
What does umbrella insurance protect?
A personal umbrella insurance policy offers an extra layer of liability protection for your wages, house, investments, cars and boats if you’re in a serious auto accident or there’s an accident on your property.
It's important to have sufficient coverage to protect your current assets and future earnings if you’re involved in a serious accident or lawsuit. Otherwise, you could be liable for more than your current auto or homeowners coverage limits.
How personal umbrella insurance works
A personal umbrella policy extends the bodily injury and personal damage liability limits of your home or auto policies. Consider the following scenario:
Your home insurance provides $300,000 of liability coverage. A serious accident happens on your property, and you’re sued for $1.3 million resulting in a judgment against you.
Your insurance pays up to $300,000 for a covered accident, but you hold responsibility for paying the remaining $1 million.
If you had $1 million of coverage under an umbrella insurance policy, you’d be covered with nothing out of your pocket (other than your monthly premium). Instead, without the additional protection from a personal umbrella policy, you’re looking at the possibility of needing to liquidate your assets to pay the remaining $1 million in this example.
Talk to an agent to find out what the best level of coverage is for your situation.
Related topics & resources
What is Personal Liability coverage?
Commercial Umbrella insurance