Umbrella insurance can offer an extra layer of financial protection in liability scenarios. While your current auto, home and other liability policies have coverage limits, an umbrella policy can kick in when those limits are surpassed. Umbrella insurance can shield you from financial disaster, whether it’s a major car accident, a slip-and-fall incident on your property or a lawsuit. 
What Is Umbrella Insurance?
Umbrella insurance can offer additional liability coverage beyond your primary policies (such as auto, home or watercraft insurance). It acts as a safety net, financially protecting your assets and savings from significant liability claims. Essentially, it offers excess liability insurance beyond your existing policies.
What Does Umbrella Insurance Cover?
Umbrella insurance coverage limits can vary, typically beginning at $1 million and extending to $5 million or beyond. These limits define the maximum payout in case of a covered liability claim. Specific limits hinge on factors such as your assets, risk exposure and individual circumstances.
Who Benefits from Umbrella Insurance?
Deciding whether you need umbrella insurance involves evaluating your risk exposure and financial situation. The following are some key factors to consider:
- Assets—If you possess significant assets (such as a home, investments or savings), umbrella insurance can shield you from liability claims that surpass your primary policy limits.
- Risk tolerance—Reflect on your comfort level with the possibility of a substantial liability claim. Umbrella insurance can offer peace of mind by helping to cover unexpected expenses.
- Lifestyle—Assess your lifestyle. Do you participate in activities that could result in liability claims?
- Existing coverage—Review your current auto, home and other policies. Umbrella insurance typically requires minimum liability coverage on these policies.
- Cost—Evaluate the affordability of umbrella insurance relative to the protection it offers—it’s often a wise investment.
Umbrella insurance can be advantageous for most individuals because accidents can happen unexpectedly, and their costs are unpredictable. Rather than paying out of pocket when you’re held responsible for an incident, umbrella insurance can assist in covering medical bills and legal expenses once other policy liability limits have been surpassed.
How Much Do Umbrella Insurance Policies Cost?
The cost of an umbrella policy depends on factors like coverage amount, risk profile and underlying insurance limits. Contact ProtectALL Insurance to discuss your umbrella insurance policy options and obtain a quote for coverage.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.