What is a Personal Umbrella Policy?

Essentially, an umbrella policy provides an extra layer of liability protection over each of your existing policies such as your home and auto insurance.  Many people carry a Personal Umbrella policy just in case they have a liability claim or lawsuit.  Hopefully, this will never happen, but if it does, then you've got insurance protection.

Minimum Policy Limits are required:

So, before a personal umbrella policy can be put into place, you must carry a minimum amount of primary coverage limits on your home and auto insurance policies.

Generally, in order to qualify for personal umbrella coverage, you must have these policy limits:

Home:   $500,000 Personal Liability or higher
Auto:      $500,000 / $500,000 / $100,000 Liability or higher
Rentals:  $300,000 Personal Liability or higher
Motorcycles, RVs, Boats and Personal Watercraft can be included; subject to minimum liability requirements

Once you've satisfied the underlying liability requirements, then you can purchase a Personal Umbrella Policy.  Umbrella policies are available in increments of $1-5 million.

So how does a Personal Umbrella policy work?

Once you have increased your liability on your home to $500,000, then you can purchase a $1 million personal umbrella.  Now you have $1.5 million of liability coverage over your home.  The same principle applies to your auto insurance and other policies.

How much does it cost?

Pricing varies based on the amount of the personal umbrella and what needs to be included in it.  A simple umbrella that includes 1 home, 2 cars and 2 drivers, can be as little as $300-$400 a year for $1 million of umbrella coverage.  This is also based on clean driving records. 

Learn more by talking with us and getting a personalized quote at 888-737-6200.