Understanding Umbrella Policies

Standard homeowner insurance policies cover liability a person might have for injuries or property damage suffered by someone else. They are designed to cover accidents for which the insured person might owe tens or even hundreds of thousands of dollars. However, sometimes the person might cause an accident so catastrophic that damages are $1 million or more.  

Insurance companies offer Personal Umbrella policies to provide additional protection when an accident uses up the amounts of insurance provided by the other policies. Once the liability limits are exhausted on your home policy, your Umbrella policy takes over and provides another layer of liability protection. 

Consider this:  While lighting a bonfire in your backyard, your tree catches fire. Then the fire spreads to both your home and your neighbor’s home. Personal Umbrella can help cover costly repairs when Homeowner's liability is reached.  

You should consider purchasing a Personal Umbrella policy if: 

• You often host guests on your property
• Your residence includes a swimming pool
• You own waterfront property, a farm, or a ranch
• You own many rental properties
• Your total assets are greater than your underlying liability limits 

Have questions? Connect with our team. Our staff can answer any questions you have about Umbrella policies.