The short answer is no - personal umbrella insurance has nothing to do with rain, flooding, or actual umbrellas. Personal umbrella insurance is a type of insurance that provides additional protection beyond the liability coverage found in standard homeowners insurance and auto insurance policies. Personal umbrella insurance can provide higher coverage limits than the underlying policies, giving you peace of mind in case of an unexpected liability claim or lawsuit.
Personal umbrella insurance typically kicks in if the limits on your existing policies have been exhausted. For example, if you are sued for more money than what is covered by your car or homeowners insurance, your personal umbrella policy could provide extra coverage to cover any remaining costs. This kind of policy can also cover claims that aren’t included on other policies, such as libel and slander.
Some other things to consider is that personal umbrella insurance can be especially helpful for those who have certain types of high-value assets — like expensive homes or luxury cars — that they want to protect from potential liability risks. And with a personal umbrella insurance policy, you can usually increase your coverage limit up to $5 million or more.
Here are the three primary reasons that personal umbrella insurance might be an important policy for you to consider adding:
1. Personal umbrella insurance provides financial protection for liability beyond your homeowners insurance or auto insurance policy limits.
2. To cover expenses related to legal action, such as court costs and attorney fees, you'll want to consider adding a personal umbrella insurance policy.
3. Personal umbrella insurance can be useful to protect against situations that may not be covered by home or auto insurance, such as libel or slander claims.
Another big advantage of personal umbrella insurance is that it is relatively inexpensive compared to other types of liability coverage. Premiums are typically calculated based on your existing underlying policies, so the cost won’t increase dramatically as your net worth increases.
And because the premiums are relatively low, it's easy to purchase additional personal umbrella insurance coverage as needed without breaking the bank.
Overall, personal umbrella insurance offers a layer of financial security against unforeseen circumstances that are not covered by traditional homeowners insurance and auto insurance policies.
Personal umbrella insurance can help protect you from costly legal fees and damages awarded against you in a lawsuit, ensuring that all your hard-earned assets — both now and in the future — remain safe and secure no matter what life throws at you. For more information on personal umbrella insurance policies as offered by Richard Dean Insurance, click here to learn more.