April Showers – Umbrella Policies

What’s an umbrella policy and why should you have one?


An umbrella policy is additional liability coverage. It protects your assets in the case of a large claim where the limits of your liability coverage on your home or auto policy would be exceeded.

Say you had a car accident. You have high limits on your auto policy, however you caused $1 million in damages and injuries. Even with great limits, your auto policy would have $500,000 in coverage…what happens with the other $500,000? If you don’t have an umbrella, you’re responsible for that amount. If you had an umbrella policy, it would come into play and cover that $500,000, saving your personal assets.

What does an umbrella cover?

  • Bodily injury to others
  • Property damage
  • Other kinds of legal damage (Libel, slander, etc)
  • Legal fees

Black umbrella covers home, car and money

Although umbrella insurance protects you against most types of lawsuits, there are certain kinds that many policies specifically exclude such as malpractice, workers compensation or business related claims, or intentional damage.

Why should you purchase an umbrella?

  • Do you own a home?
  • Have a retirement account?
  • Have more in assets than you have in liability coverage on your home or auto policy?

Then you should purchase an umbrella policy.  All it takes is one bad claim, get protected before that happens.