What is Umbrella Insurance?

We all reach for our trusty umbrella on a rainy day to keep us dry and provide protection when all else fails. It’s the same thing when it comes to umbrella insurance. It provides security and comfort when you need it most and adds extra liability coverage over your primary insurance policies like homeowners and auto.

Life is unpredictable. Common situations like having a teenage driver, owning a pet,
posting on social media, or having people visit your home carry a certain amount of risk. An unexpected incident can quickly turn into a lawsuit that costs you thousands of dollars, if not more.

You don’t have to be a millionaire to be sued like one. If something happens on your property or you are at fault, do you have enough coverage?

What does Umbrella Insurance cover?

An umbrella policy adds an extra $1 million (or more) of coverage above and beyond your existing policies. Let’s say your auto insurance policy pays $300,000 of damages per accident and your umbrella policy is for $1 million. If you are sued for $900,000, your auto insurance would pay $300,000 of the damages and your umbrella policy would pay the remaining $600,000. Umbrella policies usually provide roughly $1 million to $5 million of additional coverage, and it is possible to get more if you have lots of assets to protect.

What about the legal expenses you’ll incur if you’re sued? With umbrella policies, legal expenses are covered on top of the policy amount. Medical bills, lost wages, and other bills can add up quickly; that’s why umbrella insurance is so important. It gives you greater peace of mind and protects you against life’s unexpected surprises.