Personal Umbrella Insurance

What is a Personal Umbrella Policy?

A personal umbrella insurance policy provides an extra layer of liability protection above the limits of your car and home insurance policies, and can also go over rental properties, seasonal homes, and boats you own. If you own a business or commercial properties, this policy would not apply to those exposures. You would need to consider purchasing a separate commercial umbrella policy for that coverage.

The personal umbrella policy covers damages that you, your dependents, or your pets cause to others, and it takes effect once claims exceed your home or auto insurance liability limits (depending on the type of claim).

Example

You cause a car accident and the person you hit is injured badly, and sues you for $500,000. Your auto insurance liability limit is $250,000. Your car insurance policy would pay up to the $250,000 limit, and then your umbrella policy would protect you for the additional costs incurred, up to the limit of your umbrella policy. Without this umbrella coverage, your personal assets and future earnings would be at risk.

To be eligible for an umbrella policy, the insurance company will require you maintain certain liability limits on the underlying home and auto insurance policies, so you may need to increase those coverage limits first.

Do I need a Personal Umbrella insurance policy?

Factors that may increase your need for a personal umbrella policy are listed below.

1. Vacant Land Ownership

2. Pools, Hot Tubs, & Trampolines

3. Client Visits at Home Office

4. Home Renovation

5. Teenage Drivers and/or High Performance Cars

6. Pets

7. Volunteer Work - Board of Directors Participation

8. Chaperoning Kids’ Events

9. Tenants in Your Rental Properties

10. Toys such as ATVs, Jet Skis, Boats

11. Social Media

12. Prominent Public Profile

13. Entertaining / Parties