Umbrella Insurance

Umbrella Insurance is critical to your insurance plan

If you were found negligent or liable for someone else’s bodily injury or death, would you have enough insurance to protect your assets?

Umbrella insurance is a stand-alone liability policy that provides an additional limit of liability over and above your underlying liability limits that are already on your homeowners and auto insurance policies.

Life can be unpredictable and as much as we plan for the best, sometimes the worst can happen. This is where umbrella insurance comes into play and provides you with additional coverage that goes above and beyond to protect your assets.

Umbrella Insurance example scenario

To get a better sense of what Umbrella Insurance is and how it would work in a real life situation, it helps to think about it in action.

Say you’re held liable for causing a car accident with multiple vehicles, and the cost to cover the damages and injuries is $850,000. However, the liability limits on your Auto policy are only $300,000.

In this case, your insurance would pay only $300,000 for the entire accident, and you would be responsible for the remaining $550,000 out of your own pocket!

With an Umbrella policy, however, you could extend your liability limits beyond the maximum provided by your underlying policies. In this case, an Umbrella policy would provide liability limits above the $300,000 limit of your Auto policy, up to the limit you choose for your Umbrella policy (typically anywhere from $1 million up to $5 million in coverage).

In other words, you wouldn’t be left paying the remaining $550,000.

More examples…

• your dog bites a neighbors child
• fire at your condo spreads to other units
• accident at your rental property

How much does Umbrella insurance cost?

Umbrella insurance adds a large layer of liability protection, and the price depends mainly on the limit you choose.

The cost goes up with the number of cars and homes the policy covers and the limit you choose. We will quote it alongside your home and auto policies so you can see the actual price before you decide.

A policy with a $1,000,000 limit, for example, adds $1,000,000 of liability protection above your underlying policies. That is worth considering for anyone with assets to protect.

It only takes one accident to potentially bankrupt yourself

If you don’t have enough coverage, and in a world where medical expenses keep rising, it only makes sense to think about purchasing Umbrella insurance.

To get started with your quote, call our office, or click over to our quotes page and our team will shop the marketplace and show you how coverage from different carriers compares.

Keep in mind that most insurance carriers require that you have at least your auto insurance policy with them in order to qualify for their umbrella.

Stand alone umbrella policies are available also for special situations.