Personal Umbrella Insurance


What It Is…

Umbrella insurance is known as a “secondary liability insurance policy” that offers you additional protection beyond that of your auto insurance and homeowner’s insurance policies. If you are ever determined to be the at-fault party in a car collision or someone is injured on your property, you will have additional liability protection if anyone decides to sue you.

Who It Is for…

Umbrella insurance is for you if you have assets that you would like to protect against lawsuits. In the current climate, anyone can file a lawsuit, and the courts are ordering defendants to pay large amounts to the plaintiffs. The result may be that you will have to give up most or even all of your assets to pay the injured if you are the cause of a car collision or there is an accident on your property.

Umbrella insurance policies are also good for you if you engage in an activity that increases the possibility of lawsuits. You may also be a good candidate if you own a hot tub or a trampoline, if you own property or rent it out, or if you employ household staff. If you are a public figure, your risk increases because of this, and you will need an umbrella insurance policy. Also, anyone with a teenage driver or a dog in the house has an increased risk of lawsuits. A swimming pool increases your risk as well.

How It Works…

If you are involved in a car collision, your auto insurance policy will pay the victims up until the limits of the policy. If the court decides that the defendants are owed more than your auto insurance policy will cover, your umbrella insurance policy will pay the additional amount.

Different Types of Coverage in Existence…

Your first choice is purchasing an umbrella insurance policy that increases your liability coverage on your auto insurance and homeowner’s insurance policies. If you can’t afford to do this, you may also be able to purchase an endorsement for your insurance policies that will increase your liability coverage.

Major Benefits…

The major benefit is that you will have more money than your auto insurance or homeowner’s insurance policies will offer you in the event that you are named in a lawsuit.