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Umbrella Insurance

Umbrella Insurance: When General Liability Isn’t Enough

Your auto insurance and homeowners insurance policies have a certain amount of liability coverage. But what happens if that coverage isn’t enough to meet your needs? Umbrella insurance is around to save the day. This policy helps protect your assets should you become liable for causing harm to someone.

You might want to bundle all of your policies with one insurer. This can make things easier should a lawsuit arise. It’s not necessary to bundle your coverage, but you could possibly receive a discount on your premiums. If you decide to use different insurers, the provider of your umbrella coverage will need information about your existing liability coverage.

Umbrella Policy Details

Most umbrella policies offer at least $1 million in coverage. The highest you can go depends on the insurer, but $5 million in coverage is generally a limit set by some insurers.

When you’re found liable for damages, your main liability policy will help with the expense. If that’s not enough, then your umbrella policy will also help. But your umbrella coverage can only help up to its limits. If your coverage is $1 million, but you need $2 million, then you’re responsible for the extra million.

Generally, your risk level will affect the cost of your policy. If you’re in a position where a lawsuit is high, then you’ll probably pay a bit more than a lower-risk person. For instance, maybe you’re a gun collector who has loaded guns in the home. Your policy would likely cost more than someone who operates a daycare from home.