Umbrella liability insurance
Like any responsible homeowner or driver, you likely have home and auto insurance—possibly even at higher levels than required. You may assume those policies will protect you if someone is injured on your property or if you’re involved in an auto accident.
While home and auto insurance are important foundations, they may not always be enough. You could still be responsible for costs that exceed your coverage limits.
Rainy day protection
Umbrella insurance, also known as personal liability insurance, is designed to protect you in catastrophic situations where a claim exceeds the limits of your home or auto insurance.
Coverage is typically sold in increments of $1 million and only applies once your primary insurance limits are reached.
For example, if someone is injured on your property and the legal judgment exceeds your home policy limit, you may be responsible for the remaining amount. An umbrella policy can help cover that difference, up to the policy limit and subject to any deductibles or exclusions.
Who needs umbrella insurance?
You don’t need to be wealthy to benefit from umbrella insurance. However, the more assets you have, the more protection you may need.
Even without significant assets, a court could require future income to be used to cover damages that exceed your insurance limits.
You should also consider umbrella insurance if you:
- Have pets that may injure someone
- Work in a profession or role with higher exposure, such as physician, attorney, or public figure
- Have a swimming pool or recreational equipment on your property
Catastrophic accidents are rare, which is why umbrella insurance is often more affordable than expected. It can provide valuable peace of mind for a relatively low cost.
Protect yourself
An umbrella policy can provide additional protection against financial hardship after a major claim.
If you have questions about umbrella insurance or would like to review your current coverage, call 1-800-443-6316.