Most people think a serious liability claim will never happen to them—until it does. A major auto accident, an injury at your home, a swimming pool incident, or a claim involving a teenage driver can quickly exceed the liability limits on a standard home or auto policy. When the underlying policy limit is exhausted, the remaining damages may become your personal responsibility. That can put savings, investments, future income, and other assets at risk.
A personal umbrella policy provides an additional layer of liability protection above qualifying home and auto policies, typically starting at $1 million in additional coverage with higher limits often available. For example, if you are responsible for a serious auto accident resulting in a large judgment, your auto policy would generally respond first up to its liability limit. Once that available limit is exhausted, the umbrella policy may provide additional protection, subject to the policy’s terms, exclusions, and underlying coverage requirements.
Umbrella coverage is often surprisingly affordable compared with the amount of protection it provides. In some cases, you can get an umbrella policy for as little as $25 a month, adding $1 million or more in extra liability protection. It can be especially important for households with significant assets, rental property, teenage drivers, swimming pools, frequent guests, higher incomes, or simply more exposure to a large lawsuit. You don’t have to consider yourself “wealthy” to have something worth protecting—future earnings can matter too. If you haven’t reviewed your liability limits recently, ask us whether an umbrella policy makes sense for your household.
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