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Personal Umbrella Policy

Imagine being involved in a long and drawn out lawsuit.  You’ve exceeded the liability limits that either your auto or homeowners policy covers or you have no idea how you’ll be able to pay the rest of your legal fees. Then you find out that they all could have been covered by insurance if you had spent only a few extra hundred dollars that year on a personal umbrella policy.

What is a personal umbrella policy?

A personal umbrella policy, or personal liability umbrella policy as it is also referred to, is a policy that provides an extra layer of liability coverage encompassing all properties the insured owns as well as all vehicles/motorcycles/boats, etc. registered to them.  Even with higher than average limits of liability on homeowners and personal auto policies, those that are insured are still at risk for liability related incidents that could exceed the policy limits. In order to qualify for an umbrella policy, underlying coverage on cars and homes must meet a minimum limit, so check with your carrier today to see if any changes need to be made to have the umbrella adequately cover both policies.

What does it cover?

Personal umbrella policies cover all liability related occurrences. Coverage limits are provided in increments of one million dollars, up to five million total. It exists for the purpose of protecting the insured against the excess cost of lawsuits due to car accidents or incidents where someone is hurt on the insured’s property. It covers anything above and beyond the liability limits you are already insured for under your auto and homeowners policies. For example, if someone falls down a flight of stairs in your home and chooses to sue you, your personal liability umbrella will not be effective until the cost to defend yourself exceeds the $300,000 limit of liability you have on your homeowner’s policy.

Why do I need it?

A personal umbrella policy is always the most beneficial to have when there are a greater number of risks. Here are a few examples:

  • Many different types of vehicles all belonging to the same named insured (boats, RVs, ATVs, cars, motorcycles, etc.) means different levels of liability coverage per vehicle. Wouldn’t it be nice to know you have an extra million or two in coverage available in case something catastrophic happens?
  • Big families with many drivers on the same policy. More drivers on the road at any given time means a greater chance that there could be a mishap.
  • Families with young and inexperienced drivers. Lack of experience and some initial nervousness could lead younger drivers to be involved in an accident.
  • Families with very elderly drivers. Elderly drivers can have diminished eyesight, especially when driving at night, and slower reflexes, resulting in car crashes.
  • An insured that owns several properties and rents them out. If a renter moves into a property you own and gets hurt due to your negligence of the property’s upkeep, they could sue you. has had over a decade of experience helping clients choose the right coverages for their lives. We take the time to identify our clients’ needs and find policies that provide not only exceptional coverage but also reasonable pricing.