A personal umbrella liability policy is extra insurance that protects you if you’re sued for a large amount of money. It kicks in after your car or home insurance reaches its limit and helps pay for big accidents or lawsuits, protecting your money and assets. For example, if your car insurance covers $250,000 but a lawsuit totals $800,000, the umbrella policy pays the remaining amount. You can think of your underlying coverage as the “deductible”. Once those coverages have maxed out, then the umbrella can kick in. A personal umbrella liability policy provides a lot of protection for a relatively low cost.
Who Is a Personal Umbrella Liability Policy For?
An umbrella policy may be a good idea for anyone who wants extra protection against large lawsuits. This includes homeowners and drivers, people with savings or future income to protect, families with teenage drivers, and those who own rental properties, pools, or boats. It’s also helpful for anyone who often has guests or simply wants added peace of mind if a serious accident or claim occurs. Your home is usually your biggest asset, and you don’t want to miss out protecting it properly.
