Here’s What Personal Umbrella Insurance Can Do for You

Here’s what you need to know about personal umbrella insurance.

While your homeowners, auto, and other forms of personal insurance offer liability coverage, there’s no guarantee that this coverage is enough.  All policies have coverage limits and exclusions, meaning that your policies could leave you exposed to dangerous coverage gaps.  Fortunately, there is a way to extend your personal liability protection.  By securing personal umbrella liability insurance, you can add a second layer of coverage to all your personal insurance policies.  Here’s what you need to know about personal umbrella insurance.

  • What Does Personal Umbrella Liability Insurance Cover?

Also known as personal excess liability insurance, umbrella insurance is a type of policy that offers you personal liability coverage that extends beyond the coverage limits of your existing policies.  Personal umbrella insurance offers the same coverage as the liability sections of your homeowners or auto policies.  For instance, personal umbrella insurance will help you pay for the third-party losses that you are liable for, litigation arising from these losses, and the cost of your legal defense if you are sued.  Please note that personal umbrella insurance is a supplemental form of insurance.  This means that this coverage cannot stand alone, but must work in tandem with your homeowners, auto, or another personal policy.

  • How Does Personal Umbrella Coverage Work?

Your personal umbrella coverage provides coverage when you have a claim that exceeds the coverage limits of one of your existing policies.  For instance, assume that you cause an auto accident that results in $500,000 of damages.  While your auto coverage might offer $300,000 in liability coverage, this means that you would be personally responsible for the remaining $200,000.  If you have personal umbrella insurance in place, then your policy will kick in at this point and cover the remaining cost of the claim. 

  • Who Needs This Coverage?

While personal umbrella insurance is not a mandatory coverage, everyone can benefit from having this additional protection.  This is because everyone is at risk of being involved in an expensive claims event.  Whether it be a major auto accident or a serious liability claim arising on your property, you never know when you will be hit with a particularly devastating claim.  Having personal umbrella insurance ensures that you are ready for the unexpected.  Additionally, securing an umbrella policy is way more affordable than raising the coverage limits on all of your existing policies.  When it comes to filling potential risky gaps in your personal liability coverage, personal umbrella insurance is the most comprehensive and cost-effective solution available.

If you are interested in obtaining a personal umbrella quote, contact your advisor at CIA Insurance and Risk Management.  Our dedicated team is eager to get you the coverage that you need today.

Post written by Sam Crudo, Chief Executive Officer

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