Most people assume their auto and homeowner’s insurance provide all the protection they’ll ever need. Unfortunately, a serious accident can quickly exceed those policy limits, putting your savings, investments, future income, and even your home at risk.
A Personal Umbrella Policy provides an additional layer of liability protection above your underlying auto, home, rental property, and recreational vehicle policies. For a relatively small premium, often $200-$500 per year for $1 Million of coverage, an umbrella policy can protect your assets from a catastrophic lawsuit.
A Real-Life Example
Imagine you’re involved in an auto accident and are found responsible for causing severe injuries to another driver. The injured party incurs extensive medical expenses, loses income during recovery, and successfully sues you for $1.5 million.
If your auto policy carries a liability limit of $500,000, you would be personally responsible for the remaining $1,000,000.
Without an umbrella policy, your personal assets and future earnings could be exposed.
With a $1 million Personal Umbrella Policy, the umbrella coverage would step in after your auto policy limit is exhausted, protecting you from what could otherwise be a life-changing financial loss.
Who Should Consider an Umbrella Policy?
You may be a strong candidate if you:
- Own a home
- Have significant savings or investments
- Own rental property
- Have teenage drivers in the household
- Serve on nonprofit boards or volunteer organizations
- Simply want added peace of mind
The Bottom Line
In today’s litigious environment, a lawsuit can happen to anyone. A Personal Umbrella Policy offers a substantial layer of protection at a surprisingly affordable cost, making it one of the best values in personal insurance.
Want to know if an umbrella policy makes sense for your family? Contact our office for a complimentary coverage review.