Umbrella Insurance

Umbrella Insurance: Extra Protection When You Need It Most

 

Accidents happen, and lawsuits can be unpredictable. Standard home and auto insurance policies provide liability coverage, but those limits may not be enough in a severe accident or legal claim. An umbrella policy offers additional liability protection, helping safeguard your financial future by extending coverage beyond the limits of your primary policies.

 

How Umbrella Insurance Works

Umbrella insurance increases the total amount of liability coverage you carry, extending over policies such as:

• Auto Insurance

• Homeowners Insurance

• Watercraft Insurance

• Recreational Vehicle Policies (Motorcycles, RVs, ATVs/UTVs, etc.)

 

Policies are typically sold in increments of $1 million, with coverage ranging from $1 million to $5 million or more.

 

Umbrella vs. Excess Liability Coverage

While the terms are sometimes used interchangeably, there is a difference:

• True Umbrella Policy – Extends over multiple policies and can provide coverage for certain claims not included in underlying policies, such as liability for a rented watercraft when the insured has no underlying boat insurance.

• Excess Liability Policy – Strictly increases the liability limits of a specific underlying policy without adding any extra coverage types.

 

A true umbrella policy offers broader protection, making it the preferred choice for most individuals looking for enhanced liability coverage.

 

Optional Excess Uninsured/Underinsured Motorist (UM/UIM) Coverage

Some umbrella policies offer an excess UM/UIM coverage option, which extends additional protection if you are injured by a driver with little or no insurance. Since standard UM/UIM coverage is capped by your auto policy limits, this can be a valuable add-on, helping cover medical expenses, lost wages, and other damages in serious accidents. However, this coverage is not available through every insurance company.

 

Why an Umbrella Policy is Important for Everyone

Many people assume umbrella insurance is only for the wealthy, but anyone can be sued for significant damages, regardless of their net worth. If you’re involved in a major accident, medical bills and legal claims can quickly exceed the limits of your home or auto policy. Even without substantial assets, your wages and future earnings could be at risk.

 

You never know what kind of accident you’ll be involved in—or if the other party will hire an attorney and sue. An umbrella policy provides an extra layer of financial protection and peace of mind.

Talk to an Agent About Your Options

The cost of an umbrella policy is relatively low compared to the added protection it provides. Contact one of our licensed independent insurance agents today to learn more about how an umbrella policy can help safeguard your financial future!