When It Rains, It Pours
Personal Umbrella Insurance
Additional Protection When You Need It Most
Umbrella insurance, often called personal liability insurance, gives you extra protection on top of your home and auto policies. Umbrella coverage kicks in when your home or auto limits aren’t enough.
A personal umbrella insurance policy allows you to select a liability limit that best protects your assets, up to $5 million.
Property Damage
Helps pay for damage to another person’s property or vehicle when your liability limit has been exhausted
Injuries
If someone gets hurt and sues you, this coverage protects you once your liability limit has been reached
Lawsuits
Coverage is also provided if you're sued for libel, slander, malicious prosecution, and shock/mental anguish
Personal Umbrella Insurance FAQ
Most homeowners and auto insurance policies have a $500,000 limit. If someone sues you for $1 million after an auto accident or an incident at your home, without umbrella coverage, you could be responsible for paying the rest out-of-pocket.
Umbrella insurance is extra insurance that provides protection beyond existing limits and coverages of other policies.
Umbrella insurance can provide coverage for:
- Injuries
- Damage to property
- Certain lawsuits
- Personal liability situations
Umbrella insurance also typically extends to other members of your household, such as your spouse, children and other relatives who live in your home and who do not have auto or property insurance in their own name. If your teen causes a car accident, your umbrella insurance policy may help protect them.
The cost of an umbrella policy mostly depends on the limit you choose – $1 million, $3 million, etc.
Before adding an umbrella, most insurance carriers require that you max out the limits on your home and auto policies first (increase the limits to $500,000).
Dollar for dollar, an umbrella policy is one of the most affordable coverages you can get.
Your car, house, investments and retirement accounts, as well as your normal checking and savings accounts and even future income, are all considered assets. If you are sued and do not have enough insurance coverage, these assets can be seized in order to settle any outstanding debt you owe.
An umbrella policy can prevent financial ruin due to one misstep or unforeseen accident.
Typically, no.
There is a gray area when it comes to owners of rental properties. Owning and renting out homes is a business transaction, but you can also include your rental properties under a personal umbrella policy. In this case, you may be able to deduct a portion of your premiums from your taxes.
