Personal Umbrella

What is the purpose of a personal umbrella policy?

There’s no law requiring you to buy umbrella insurance. But if you have a lot of assets or a high chance of being sued, you might want an umbrella policy. It might be worth buying umbrella insurance coverage if you: Own property.

A personal umbrella policy is called an “umbrella” policy because it provides liability coverage over and above your standard auto insurance or homeowners insurance. It offers protection for you and family in your household against large and potentially devastating liability claims or judgments.

The purpose of a personal umbrella insurance policy is to provide additional liability coverage beyond the limits of your underlying insurance policies, such as your home or auto insurance policy.

Personal umbrella insurance provides an extra layer of protection for you and your assets in case you’re sued for damages that exceed the limits of your underlying insurance policies. For example, if you’re involved in a car accident and found liable for damages that exceed the limits of your auto insurance policy, your personal umbrella insurance policy would kick in to cover the additional damages, up to the policy limit.

Personal umbrella insurance can provide coverage for a wide range of incidents, including personal injury, property damage, and even defamation lawsuits. It’s designed to protect your assets, such as your home, savings, and investments, in case of a lawsuit where damages exceed the limits of your underlying insurance policies.

It’s important to note that personal umbrella insurance is not a standalone policy and is typically only available if you have an underlying insurance policy, such as home or auto insurance. It’s also important to review and compare policies from different insurers to find the best coverage for your needs and budget.