Do I Need an Umbrella?

by | Aug 13, 2019 | Auto & Home

Many people ask us if they should buy a Personal Umbrella Liability policy. The question, often times, comes across as, “I’m not a millionaire, do I really need a million dollars worth of coverage?”  The answer might surprise you.

A few decades ago, a multimillion dollar insurance claim was unheard of. Today, a million dollars is a whole lot less money than it used to be, and now, it’s not uncommon for lawsuits from everyday accidents to run in the seven-digits. Sadly, it is a sign of the times we live in.

So, What Exactly is Umbrella Insurance?

An umbrella insurance policy is extra liability insurance coverage that goes beyond the limits of the insured’s home, auto or watercraft insurance. It provides an additional layer of security for those who are at risk of being sued for damages to other people’s property, or injuries caused to others in an accident.

An umbrella also protects against libel, vandalism, slander and invasion of privacy, and is very helpful when the insurance owner is sued and the dollar limit of the original policy has been exhausted. The added coverage provided by liability insurance is most useful to individuals who own assets and are at significant risk of being sued.

Getting Sued

If you are ever sued and found liable, your standard homeowners or auto insurance policy will provide you with some liability coverage, paying for judgments against you up to the limit set in the policy.

An Umbrella policy “kicks in” when you reach the limit on the underlying liability coverage in a homeowners, renters, condo, or auto policy. It will also cover you for things such as libel and slander.

In our lawsuit-happy society today, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides, and what we at United Agencies are experts in.


If you have $300,000 coverage under your homeowners’ policy and you have a claim settlement for $1,500,000. If you are found libel, the umbrella policy would pick up the additional amount up to the umbrella limit of liability. Personal umbrella liability policies add coverage to the liability on your home and vehicle(s) for a single premium. 

Is an Umbrella Worth Buying? In Many Cases, the Answer is “YES.”

If you are unsure whether an umbrella policy is right for you, contact our office for assistance. A UA agent is happy to be of assistance. The good news is you do not have to be a millionaire to afford an umbrella policy. In fact, for about $350 per year, you can buy a $1,000,000 personal umbrella liability policy.

Because this policy goes into effect after the underlying coverage is exhausted, there are certain limits that must be met in order to purchase this coverage. Most insurance companies will want you to have about $250,000/500,000 of liability insurance on your car and $300,000 of liability insurance on your homeowners’ policy, before selling you an umbrella liability policy for $1,000,000 of additional coverage.

Our agents are experienced and well-versed in Personal Umbrella Insurance. Please don’t hesitate to contact us today for further assistance. Call us toll-free (800) 800-5880 or go online and a staff member will be happy to help.

Want to Know More About Umbrella Insurance?

Our trained staff is standing by ready to assist you with all of your insurance needs!

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