Umbrella insurance can be a relatively affordable way to add an additional layer of liability protection. It sits above your home and auto liability coverage and is designed to provide additional protection when covered claims exceed those underlying policy limits.
For many households, an umbrella policy is worth considering. The more important question is how much coverage may be appropriate for their situation.
How Much Coverage Should You Consider?
There isn't one amount that's right for every household. Your assets and income are part of the picture, but so are your overall liability exposures — including the drivers in your household, properties you own, recreational vehicles, and other factors that could increase your risk.
Umbrella policies commonly start at $1 million in coverage, with higher limits available depending on the household and the exposures being insured.
How Umbrella Coverage Fits
Umbrella policies generally require certain underlying liability limits on your home and auto policies. If those underlying limits don't meet the umbrella carrier's requirements, it can create a coverage issue. Making sure the policies are structured to work together is an important part of a coverage review.
Who Should Consider Umbrella Coverage?
• Homeowners with assets or equity to protect
• Households with teen or young adult drivers
• People who own rental or secondary properties
• Households with pools, dogs, recreational vehicles, or other liability exposures
• Anyone whose income or future earnings could be important to protect
If any of those situations sound familiar, an umbrella policy may be worth considering. During a coverage review, I'll explain how umbrella coverage works, discuss the available options, and help you determine whether it's appropriate for your needs.
