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  • The Danskin Agency

Deciding if an Umbrella Policy is right for you

Wondering what a personal umbrella policy is?  Perhaps you are familiar with the concept of an umbrella policy, and have considered whether it would be worth it for you?  In some of the worst circumstances, your home and auto insurance policies may not have adequate liability limits to help you handle an unfortunate situation.  A personal umbrella policy is a relatively inexpensive way to get the additional coverage you may need over and above your home, auto, boat, and other insurance limits.

An umbrella policy provides “excess” personal liability insurance. It’s a very useful policy to have if and when you have a claim that could exceed the current limits of your auto or homeowners insurance. You may ask yourself, “Why would I need this type of policy?” While we wish the answer was “never,” things do happen.  

Let’s review a few examples of things that have happened where having an umbrella policy would be a game changer:

  1. You’re in a car accident where multiple people have been hurt.  Your auto insurance limits aren’t large enough to cover the medical treatment and property damage for everyone that was affected by the accident. 

  2. Your child brings classmates home after school.  You make a meal for them, and for some reason multiple kids get an allergic reaction from the meal and require medical treatment.  Their parents end up suing you. 

  3. A friend who attended a small gathering at your house falls over a retaining wall in your backyard, severely injuring his neck and spinal cord.

The list can go on and on – this is life, after all!  We know that problems often arise without any prior notice or warning.  When you are trying to decide on whether you should seek out a personal umbrella policy, think of an actual umbrella.  Multiple people can stand under it protected, dry from the rain. That is how this policy works; all of your existing personal insurance polices can sit under the umbrella of excess liability provided by this one policy.  Whomever lives in your house with you and drives your vehicles will be protected as well. 

Of course the cost of this insurance varies depending on how many people live in your home, how many automobiles you own, the state where you live, etc., but all in all, it is one of the most reasonable policies out there. If you are interested and would like to learn more on how to apply for an Umbrella Policy, please give us a call or email and we would be more than happy to set up a time to speak with you.


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