Research Center


Umbrella Coverage


Date: 2018-05-10

We’ve talked about Umbrella coverage before but what does it really mean? How does it relate to your needs and the policies you already have in place?

What is umbrella insurance coverage? Umbrella insurance coverage is a type of extra liability insurance that supplements any basic liability policy that you already have, such as auto or home. These policies are designed to protect your assets and future from major claims and lawsuits.

Who needs Umbrella Insurance Coverage? Anyone can get an Umbrella policy, your line of business or assets might dictate that an additional policy is needed for a more complete coverage. The valuation of your home may call for extra liability limit in the event someone is injured on your property. If your job is to review content for a publication you might want extra liability coverage. If you’re athletic you might want extra coverage for yourself or anyone you might injure.

How much umbrella coverage do I need? The coverage amount can vary depending on the type that you need. A good rule of thumb is to have enough insurance coverage to cover your net worth, this includes your savings, other assets and income. If you are a student (possibly medical or legal) you might want to include your potential earning as well.

When does Umbrella Coverage come into effect? Once your basic liability limits have been exhausted or the claim is excluded from your basic policy your umbrella policy will be activated. Again if your claim or settlement amount exceeds your coverage limit that amount you will be responsible for paying out of pocket.

If you have any more questions, give the office a call today and we'll be happy to talk about tailored coverage options for your needs.

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