An umbrella policy provides extra liability coverage once the limits on your auto, home or other underlying policies have been used up. It's often an inexpensive way to add significant protection.
A simple example
Imagine you cause a serious accident and the damages come to $700,000, while your auto liability limit is $300,000. Without an umbrella, you could be responsible for the remaining $400,000. With one, the umbrella can step in for that amount, up to its limit.
Who should consider one
- Homeowners with equity, savings or investments to protect
- Families with teen drivers
- People who host gatherings or have a pool or trampoline
- Landlords and anyone who owns rental property
- Boat, ATV or RV owners
- Anyone whose income is likely to grow over time
How it works with your other policies
Umbrella insurers usually require you to carry a minimum level of liability on your underlying auto and home policies. The umbrella then sits above those limits. It typically also covers some situations those policies may not, such as certain claims involving libel or slander.
How much coverage?
A common starting point is to match the umbrella amount to your net worth plus future earnings you'd want to protect. We can help you pick a number that makes sense for your situation.