What is a Personal Umbrella Liability Policy?

What is a Personal Umbrella Liability Policy?

April 01, 2023

What is a Personal Umbrella Liability Policy?

Personal Umbrella insurance is a type of coverage that provides additional liability protection beyond what is covered by your existing insurance policies. This coverage is important since accidents and lawsuits can happen unexpectedly, leaving you vulnerable to financial losses.

Personal Umbrella insurance is designed to provide you with extra protection in case you are held liable for damages or injuries that exceed the limits of your existing insurance policies. For example, if you are involved in a car accident that results in significant injuries and damages, your auto insurance policy may not provide enough coverage to pay for all the damages. In this case, Personal Umbrella insurance would provide additional coverage to help pay for the remaining damages.

Personal Umbrella insurance is particularly important for individuals who own assets such as homes, cars, or boats. If you are held liable for damages or injuries that exceed the limits of your existing insurance policies, you may be forced to sell your assets to pay for the remaining damages. You could even have your future earnings be affected per a court order. Personal Umbrella insurance can help protect your assets and provide you with financial security in case of a lawsuit.

The cost of personal umbrella insurance varies depending on your individual needs and the insurance company you choose. However, the cost of this coverage is generally affordable, especially when compared to the potential financial losses that can result from a lawsuit. It usually starts at a couple hundred dollars/year for $1,000,000 coverage. Depending on your financial situation, you may wish to consider a much higher Personal Umbrella limit.

In addition to providing you with additional liability protection, Personal Umbrella insurance can also give you peace of mind knowing that you are protected against unexpected events. It can also help protect your future earnings and assets by providing you with a higher level of protection than what is offered by your existing insurance policies.

Personal Umbrella insurance is an important coverage option for individuals who want to protect their assets and future earnings. This coverage provides additional liability protection beyond what is covered by your existing insurance policies, helping you avoid financial losses in case of a lawsuit. If you are interested in learning more about personal umbrella insurance, please contact us.  We can help you understand the coverage options available to you and help you choose the best coverage for your needs.

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