personal umbrella

What Is a Personal Umbrella Policy?

In the event that someone is injured on your property and you are found legally responsible, you could be faced with a costly financial burden. In fact, without a personal umbrella policy, any expenses beyond the limits of your standard policy are your responsibility. This applies to your homeowners, renters, automobile, and watercraft insurance policies.

Personal umbrella insurance provides an extra layer of protection over your personal assets for when your standard insurance coverage is exhausted.

 

Engaging in Everyday Can Put You at Risk for a Lawsuit

If you engage in a high-risk activity or hobby that increases your odds of getting sued- such asĀ  having a teenage driver, owning a swimming pool, or entertaining frequently- it is wise to supplement your insurance with a personal umbrella policy.

 

Why Is a Personal Umbrella Policy Important?

It works to fill the gaps in your coverage and provides the following benefits:

  • When litigation ensues, it’s typically for a large amount. If you get into a car accident and injure several people, you could be sued for millions of dollars; well beyond the limits of your automobile policy. You can also be held responsible if your dog bites someone, if your child injures another kid in a fight at school or while playing, or if a handyman hurts himself at your home
  • Umbrella policies cover legal fees because the insurance company assumes the risk, not you
  • You’ll have peace of mind knowing you are covered in case of a fluke occurrence
  • Coverage is inexpensive and easy to obtain. Just give us a call to add it t your current policy

 

How Much Coverage Do You Need?

You’ll want to take into consideration not only your total personal assets but also your potential personal risks. For example, do you operate a business in your home and have employees and clients to your home on a regular basis? Does your profession or location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you. Coverages start at $1 million and can go as high as $10 million.

 

How Much Does Personal Umbrella Coverage Cost?

Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets, your credit rating and more, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter.

Umbrella policies are also recommended for business and commercial use. To learn more about commercial umbrella insurance, click here.

When considering the value of the umbrella policy, discuss your personal needs with us today. Contact us via the form below to start the conversation. Be sure to like us on Facebook and follow us on LinkedIn for more tips and industry news!