Personal Umbrella Insurance
Personal Umbrella Insurance Information
What is a Personal Umbrella insurance policy?
Personal umbrella insurance is a type of insurance designed to add extra liability coverage over and above another insurance policy, such as auto or homeowners insurance. It is designed to work with other policies such as your auto or home - basically any policy that includes bodily injury and property damage liability. Your auto and home would be considered as underlying policies. A personal umbrella policy is not purchased by itself. You purchase it along with other policies since it is considered additional coverage. In most cases, personal umbrella policies are available in million-dollar increments, from $1 to $5 million.
How a Personal Umbrella insurance policy works
This is best illustrated with an example. Suppose you have auto insurance and homeowners insurance. The auto insurance includes a $300,000 bodily injury and property damage liability limit. The home has a $500,00 bodily injury and property damage liability limit.
You cause an accident and your auto policy pays out the maximum limit of $250,000. You are being sued for $1,000,000. Once the auto policy pays its limit, it is done. If you have a personal umbrella, the policy would kick in and pay the remaining $750,000. Without that personal umbrella insurance policy, you would personally be on the hook for that difference of $750,000. Where are you going to get that money from? The personal umbrella policy can help cover the additional costs when your standard insurance policy isn't enough. An umbrella policy could provide the additional coverage you need so that you don't get stuck trying to pay the remaining balance yourself. This extra policy could help protect your bank account, home and other personal property.
What a Personal Umbrella policy covers
What is typically covered is bodily injury, personal injury, and property damage to OTHERS. However, a personal umbrella policy also helps protect YOU from large and potentially devastating liability claims or judgments that could leave you in financial ruin.
Let us help you find a personal umbrella policy
We generally do not sell a stand-alone personal umbrella policy. We sell it in tandem with an auto and home policy. Some companies offer package policies which bundle all three policies together. Not everyone qualifies though for a personal umbrella policy. The insurance company might require that you carry certain limits on your auto and home policies in order to qualify for a personal umbrella. Let us help you decide if a personal umbrella would be best for you.
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