We get this question all the time: “What is an umbrella policy?” Simply put, it’s an extra layer of liability protection beyond what your home and auto policies cover. It can also apply in situations that have nothing to do with your home or car—cases where you could still be sued and your standard policies wouldn’t provide coverage. Check with your agent for the details.
Most people think their home and auto insurance have them fully covered…until something big happens in an instant. Think about a serious car accident…maybe involving your teen driver…or someone gets hurt on your property. Your liability limits on your home and auto policies don’t mean that’s all someone can recover from you—they simply cap what your insurance will pay. They could sue you for more. Then your current and future assets and income are in jeopardy. Medical bills add up fast, and the truth is that we live in a very litigious world.
Who needs this? Honestly, just about everyone—but especially homeowners, families with teenage drivers, and anyone with multiple properties or recreational “toys.” This is really one of the most affordable ways to protect yourself.
Some umbrella policies even include endorsements that provide additional protection for your own family if you’re involved in a serious accident. For example, an uninsured/underinsured motorist endorsement can help cover expenses if someone hits you without sufficient insurance. This is in addition to what your auto policy already covers. It’s worth a conversation to save yourself financially from a catastrophic situation.
