Umbrella Insurance: Your Financial Safety Net

Imagine you're at fault in a serious car accident. Medical bills reach $500,000, but your auto policy only covers $300,000. Who pays the remaining $200,000? Without an umbrella policy, you do — from your savings, investments, and potentially your home equity.

What an Umbrella Policy Covers

An umbrella policy provides additional liability coverage beyond the limits of your home and auto policies. It kicks in when your underlying policies are exhausted:

• Serious auto accidents with injuries
• Lawsuits from injuries on your property
• Defamation, libel, or slander claims
• Rental property liability
• Certain lawsuits not covered by underlying policies

How Much Does It Cost?

Umbrella insurance is remarkably affordable:

• $1 million coverage: $150–$300/year
• $2 million coverage: $200–$400/year
• $5 million coverage: $350–$600/year

That's as little as $0.41/day for $1 million in additional protection.

Who Needs an Umbrella Policy?

Consider one if you:

• Own a home (you have assets to protect)
• Have a pool, trampoline, or dog
• Own rental properties
• Have teenage drivers on your auto policy
• Have a net worth exceeding your liability limits
• Coach youth sports or volunteer
• Are active on social media (defamation risk)

The Real-World Scenario

A guest slips on your icy driveway, suffers a spinal injury, and sues for $800,000. Your home insurance liability limit is $300,000. Without an umbrella:

• Insurance pays: $300,000
• You pay: $500,000 from personal assets

With a $1M umbrella policy:

• Home insurance pays: $300,000
• Umbrella pays: $500,000
• You pay: $0

Add an Umbrella to Your Coverage

At pennies per day, an umbrella policy is one of the best values in insurance. Ask us about adding an umbrella to your coverage during your next review.