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May 20, 2021

The Advantage of Personal Umbrella Insurance

What would it cost if someone sued you after they were hurt in your home? What if they demanded compensation because you accidently damaged their property? Most people don’t like to think about the financial ruin that might be brought by such encounters. 

Under your homeowners insurance, you may have liability insurance available to help cover the costs of a lawsuit. But, even this coverage is not unlimited, and there are times when a claim might exceed your liability limits. It’s at this point that a benefit known as personal umbrella coverage may provide lifesaving support.  

The Basics of Personal Umbrella Liability Policies   

If you’re found to be legally responsible for injuring someone or damaging their property, you’ll have to pay for their losses. Without a personal umbrella liability insurance policy, any losses beyond the limits of your standard liability insurance coverage will come out of your own pocket.  

A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policy limits. It protects your personal assets by kicking in when your standard liability coverage is exhausted. Usually, one umbrella plan can apply to multiple personal policies at once, including homeowners, auto, boat, motorcycle and renters policies.    

Who Needs an Umbrella Liability Policy?   

High-risk activities or hobbies—having a teen driver at home, owning a swimming pool, entertaining frequently—can increase your odds of being sued if someone gets hurt, making it a good idea to supplement your insurance with a personal umbrella policy.  

How Much Coverage Do I Need?  

You don’t want to be financially ruined by an accident lawsuit. Therefore, you’ll want to consider your full net worth in order to adequately protect it with matching liability coverage.   

This is particularly true for high-value homeowners, who have more value wrapped up in their property than others. A lawsuit could be devastating, and even the liability coverage within their homeowners plans might not be adequate. Umbrella coverage—which can often provide extra coverage starting at a $1 million minimum—can provide a high amount of additional protection that you might not even realize you need.   

How Much Does Coverage Cost?   

Umbrella coverage is generally very affordable, especially when you consider the benefits you receive. Many policies only cost a few hundred dollars annually, which is comparable to, if not less than, the standard premium on your home or auto insurance. Get the additional protection you need today with a personal umbrella plan.

Categories: Personal Umbrella

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