Personal Umbrella Insurance

Often referred to as “rich man’s insurance”, nothing could be further from the truth. A Personal Umbrella policy offers an additional layer of liability coverage that kicks in when the limits of the underlying policies have been reached. This umbrella or excess coverage should be seriously considered by more than just the wealthy.

Since most homeowner, auto, boat, motorcycle and RV policies have maximum limits of $300,000 or $500,000, an umbrella policy should be considered if your total assets are more than the limits of your policies. For most families, this limit can be easily reached when considering physical assets, savings accounts and even some retirement accounts.

If you are in an at-fault automobile accident, it is not difficult for the injury expenses of the other driver and passengers to amount to more than the limits of your policy; especially if you take into consideration resulting lawsuits if one or more passengers in the other vehicle die. In this worse-case scenario, an Umbrella policy may be the only thing that can save the at-fault driver from financial devastation.

Most Personal Umbrellas will also offer uninsured/underinsured liability coverage as well. This coverage is going to help protect YOU if you are injured in an accident caused by another driver who does not have adequate limits of liability in their auto policy to pay for serious injuries or restitution for pain and suffering. Many auto and boating accidents can result in lifelong medical care with plenty of pain and suffering to go with it.

One of the best things about the Umbrella Policy is that it provides excess coverage for all of your property and vehicles. Many people own a residence, vacation home, rental properties, automobiles and many other toys that might cause that worse-case scenario. The pricing for what it provides is usually ridiculously low. For an investment of about $300 a year, you will be rewarded with the peace of mind that comes with knowing you have protected yourself and your family from financial devastation which can result from an unintended accident.

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