What Is Umbrella Insurance?

Ever worried about what would happen if you got sued for more than your insurance covers?

That’s exactly why umbrella insurance exists. It’s like a safety net for life’s unexpected “what ifs.” Many people have basic coverage through their home or auto insurance—but when a claim goes beyond those limits, umbrella insurance can step in to protect your savings, your assets, and even your future income.

Whether it’s a car accident, a poolside mishap, or an unexpected incident involving your beloved dog (don’t worry—we love our dog friends!), umbrella insurance provides an extra layer of protection you hope you never need—but will be grateful to have if the worst happens.

What Is Umbrella Insurance?

Simply put, umbrella insurance is extra liability coverage that sits on top of your existing policies, like home, auto, or boat insurance. It doesn’t replace your current policies—it enhances them, giving you peace of mind in case of a major accident or lawsuit.

Think of it as the financial backup plan you hope you never need—but will be grateful to have if the worst happens.

How Umbrella Insurance Works

Umbrella insurance kicks in after your primary insurance limits are maxed out.

For example, if you have an umbrella policy with a $1 million limit:

• Your homeowner’s insurance covers up to $500,000 in liability.
• Someone sues you for $1 million after an accident on your property.
• Your umbrella policy can cover the remaining $500,000.

Coverage typically starts at $1 million and can go up to $10 million—or more—depending on your needs.

What Umbrella Insurance Covers

Here’s what umbrella insurance usually protects you against:

• Bodily injury liability: If someone is hurt on your property, in an accident you’re responsible for, or even in a mishap involving your dog (again—don’t worry, we love our furry friends!)
• Property damage liability: Covers damage to someone else’s property, including accidents near your pool
• Certain lawsuits: Like slander, libel, or defamation
• Legal defense costs: Including lawyer fees in covered cases

It doesn’t cover everything—like damage to your own property, business related pursuits, or intentional acts—but it does protect your assets when the stakes are high.

Who Should Consider Umbrella Insurance

Umbrella insurance isn’t just for the ultra-wealthy. It’s useful if you:

• Own a home, rental properties, or other significant assets
• Own and use a vehicle, boat, or recreational vehicle
• Have a higher risk of lawsuits due to your work, hobbies, or public profile
• Own a dog, especially certain breeds that may carry higher liability risks
• Have a pool, since accidents on your property could result in costly claims

Basically, if you have something to protect—or something that could accidentally cause damage or injury—an umbrella policy is worth considering.

How Much Does Umbrella Insurance Cost?

The good news? Umbrella insurance is surprisingly affordable.

• Typical policies cost $150–$300 per year for $1 million in coverage.
• Price depends on your assets, risk exposure, and existing insurance policies.

For the protection it offers, it’s a small price to pay for peace of mind.

Tips for Choosing the Right Policy

1. Know your assets: Make sure your coverage matches what you want to protect.
2. Assess your risk: Consider your lifestyle, property, and potential liabilities.
3. Compare quotes: Going through an agency (like us!) allows your agent to shop around for you. Prices and coverage can vary.
4. Check your existing policies: Make sure your home and auto insurance have enough coverage to qualify for an umbrella policy.

The Bottom Line

Life can throw unexpected surprises your way, and standard insurance might not always be enough. Umbrella insurance adds a safety net that protects your finances, your assets, and your peace of mind when the stakes are high.

If you’re ready to feel more secure, reach out to us (or your local agent) to see if umbrella insurance is right for you. It’s better to have it—and not need it—than need it—and not have it.