More Liability Protection
When the Limits Run Out.
Umbrella Insurance Is About Protecting What You've Built
A serious liability claim can become much larger than the limits on an auto or homeowners policy. Umbrella insurance is designed to add another layer of protection when a covered liability loss exceeds those underlying limits.
The key is making sure the policies underneath the umbrella are set up correctly too.
Where an Umbrella Policy Can Help
Coverage varies by carrier and policy, but these are some of the situations where additional liability protection can become important.
Serious Auto Accidents
If you cause a major accident and the damages exceed your auto liability limits, an umbrella policy may provide additional covered liability protection.
Injuries on Your Property
A serious injury at your home can create a large liability claim that may exceed the limit on your homeowners policy.
Multiple Vehicles & Drivers
More vehicles and drivers can mean more liability exposure, especially when teen or youthful drivers are part of the household.
Rental Properties
Certain rental properties may be eligible for protection under an umbrella policy when properly scheduled and insured underneath it.
Boats & Recreational Vehicles
Eligible boats, motorcycles and recreational vehicles may also need to be included when building the liability structure underneath an umbrella.
Assets & Future Income
Liability protection is not just about what you own today. A large judgment can potentially affect savings, assets and future income.
Your Umbrella Sits on Top of Other Policies
Many umbrella carriers require higher underlying auto liability limits. I typically review whether limits such as 250/500/100 make sense when an umbrella is part of the overall protection strategy, but exact requirements vary by carrier.
Your homeowners policy generally needs to carry a qualifying personal liability limit underneath the umbrella. The required amount depends on the umbrella carrier.
Household vehicles, motorcycles, recreational vehicles and other exposures need to be reviewed so we know what must be insured and scheduled underneath the umbrella.
Household members and regular drivers should be properly addressed on the underlying policies. A liability strategy only works when the information underneath it is accurate.
If you own rental property, the underlying landlord or dwelling policy may need to meet specific liability requirements before the umbrella extends over it.
Umbrella Coverage Is Not Just for Millionaires
People often think umbrella insurance only matters if they have a huge net worth. In reality, anyone with meaningful assets, income, teen drivers, rental property or other liability exposure may have a reason to consider additional protection.
Umbrella Insurance Questions
These are some of the questions I help clients work through when deciding whether an umbrella policy makes sense.
What does an umbrella insurance policy cover?
An umbrella policy generally provides additional liability protection above qualifying underlying policies such as auto and homeowners insurance. Exact coverage, exclusions and eligibility vary by carrier.
How much umbrella insurance do I need?
There is no single number that works for everyone. I look at your assets, income, household drivers, properties and overall liability exposure to help determine what level of protection is worth considering.
Do I need higher auto limits before buying an umbrella?
Usually, yes. Umbrella carriers commonly require minimum auto liability limits underneath the umbrella. The exact requirement depends on the carrier.
Does my home liability limit need to be increased too?
It may. The homeowners policy generally needs to carry a qualifying liability limit before the umbrella coverage sits above it.
Can an umbrella cover a teen driver?
An umbrella may provide additional liability protection for eligible household drivers, but the teen must be properly addressed on the underlying auto policy and carrier requirements still apply.
Can rental properties be covered by an umbrella?
Often they can, depending on the carrier, number of properties and how the rental properties are insured. Each property should be reviewed individually.
Does an umbrella cover damage to my own property?
Umbrella insurance is primarily additional liability protection. It is not designed to replace the property coverage on your auto, home or other underlying policies.
Is umbrella insurance expensive?
Pricing depends on the number of drivers, vehicles, properties and other exposures. The cost should be evaluated alongside the amount of additional liability protection being purchased.
Not Sure If You Have Enough Liability Protection?
Send me your current auto, home and umbrella declarations pages. I’ll review how the liability limits work together, look for gaps in the underlying policies and tell you whether the structure makes sense.