Personal Umbrella Insurance


PERSONAL UMBRELLA Insurance

What It Is…

You have homeowners’ insurance to protect your home, and you have auto insurance that protects you in case of a car collision, but these policies have limits on the amount of liability coverage you can purchase. The umbrella insurance policy was meant to increase the amount of liability coverage you can have in the event that someone is injured on your property or in a car collision.

Who It Is for…

Personal umbrella insurance is for anyone at risk of being the subject of a lawsuit that could result in massive judgments against them. For instance, if there is a possibility that you could be found negligent for causing an accident that results in serious injuries, the court may order you to pay the plaintiff millions of dollars in damages.

How It Works…

An umbrella insurance policy takes over where your auto insurance policy and your homeowners’ insurance policy end. For example, if there is an accident on your property that results in injuries, your homeowners’ insurance policy will pay the victims’ medical bills up to the limits of the policy. However, the court may have ordered you to pay the victims much more than this amount. In this case, your umbrella insurance policy would increase liability coverage for bodily injuries that occur at your home, so your umbrella insurance policy will pay the remainder of the judgment that the victims received.

Different Types of Coverage in Existence…

Umbrella insurance is one policy that increases your amount of liability coverage. You can also purchase excess liability coverage that would cover you for bodily injuries suffered at your home. Excess liability coverage would not cover you for all of the things that your homeowners’ insurance policy would cover you for, so it is a more limited type of policy.

Major Benefits…

Your auto insurance policy may not be able to cover you for the entire amount of money that a judge may order you to pay a victim in an accident that you caused. If this were to be the case, you would need to find other ways to pay the victim, and this may mean that you will need to liquidate your retirement accounts. Umbrella insurance makes it so that you can avoid this possibility.