What Is a Personal Umbrella Policy? Is It Right for You?

A personal umbrella policy is an extra layer of protection. It pays for claims and judgments against you or your family above the limits of coverage on your homeowners and auto policies. It also provides coverage for some things that other policies don’t.

Suppose, for example, that you get into a serious car accident, and the other driver sustains injuries requiring surgeries, a lengthy hospital stay, and rehabilitation.

Your car insurance might not be enough to cover all of these medical expenses, so if the accident were your fault, you’d be liable for any costs above your auto insurance policy’s coverage limits. This is when your umbrella insurance policy would kick in.

Now suppose the injured driver loses months of income because he or she can’t work while injured. You could be sued and held liable to pay thousands more in lost wages. Umbrella insurance could pay these costs as well.

Similarly, an umbrella policy would provide extra coverage above and beyond the limits of your homeowner’s policy in the event, someone was to sustain a serious injury while on your property or arising from a personal pursuit, like golfing or skiing.

Other Typical Coverages and Benefits

• Property Damages: Pays for damages or loss to other people’s physical property (including vehicle repairs/replacements or accidental damage to another person’s home, property, or expensive belongings) if you, an insured family member, or even your pet is found at fault.
• Lawsuits Against You: Provides defense coverage, including legal fees and court costs, in the event you are sued.
• Vacation Rentals: Offers extensive coverage for accidental damage that you or an insured family member may cause to a vacation home you are renting.
• Boats and Watercraft: Pays for accidental damage to a boat or personal watercraft you rent (you may need to have a watercraft policy to provide the first level of coverage).
• Libel and Slander Claims: With the proliferation of social media comes to an increased risk that you or a family member could be sued for libel (unjustly publishing an unfavorable statement that could damage another person’s reputation).
• Worldwide Coverage: Increased coverage for international travelers.
• Peace of Mind: Accidents happen all the time. And the results can be costly. In today’s litigious world, it’s not outside the realm of possibility that you could be sued for thousands — even millions — of dollars at some point.

Is an Umbrella Policy Right for You?

Do own a home, have significant assets or earning power, or just want to protect your assets?

Are you a landlord? Do you have a pool, trampoline, or equipment that could cause injury to someone? Do you have a lot of visitors to your home? Own a dog? Travel extensively? Do a lot of driving?

If so, you could be a prime candidate for a personal umbrella policy (as long as you have the required home and auto – and, if necessary, watercraft – coverage).

Remember, as the above scenarios illustrate, all it takes is one incident to wipe out the savings you’ve spent a lifetime working for. A personal umbrella policy provides a million dollars’ coverage or more and is a relatively inexpensive way to protect your assets, typically costing less than $25 a month.

Paul & Dixon Is Here to Help!

Our expert staff can help you assess your needs, explore your options, and find the right insurance at the best value. To learn more about personal umbrella policies, please contact us with your questions.