Umbrella Insurance

Let’s Talk Umbrella Insurance

Umbrella coverage is supplemental liability insurance that goes beyond the policy limits of a typical auto or homeowner’s insurance policy. If your existing liability protection isn’t enough to fully compensate someone’s damages for which you are deemed at fault, whether it be, for example, from a motor vehicle accident or an injury in your home, this is where umbrella coverage steps in to avert financial tragedy.

Who Needs It?

Though one may not know it, it is not necessary to be affluent to enjoy the benefits of good umbrella insurance coverage. Just simply owning your own home is enough to justify having this important added protection. Whether you fall asleep at the wheel and cause an accident or if a visitor falls and breaks a leg in your home, without enough coverage, everything you have worked so hard to build could be in jeopardy. Often, the usual auto or homeowners’ insurance plan will cover the initial $300,000. The problem is that you are personally liable for any amounts that go beyond that or any other policy limit.

Aspects of Coverage

Good umbrella insurance will even cover certain perils not protected by existing homeowners’ or auto insurance policies. Examples include:
• Defamation or Slander
• Malicious prosecution
• False arrest or imprisonment
• Infliction of mental anguish
With a typical umbrella policy, the insurance provider will appoint a legal team on your behalf to fight such issues as above and the insurer can pay for court costs and for lawyers, and more. If you’re found to be guilty with a judgment against you for a substantial sum, your umbrella coverage can protect you with a payment for any level of judgment that exceeds your standard coverage. (Limited to the maximum amount of your umbrella coverage.)

How it Works

Umbrella coverage comes in $1 million increments. Depending on your past history, the first million dollars of umbrella coverage will usually cost around just $300 per year. Each additional $1 million of coverage will likely cost another $100 or so.
Speak with an insurance agent for more information on this important coverage.






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