Understanding Umbrella Insurance: Do You Really Need It?

Most people assume their auto or homeowners policy provides enough liability protection.

In reality, lawsuits today often exceed standard policy limits.

That’s where umbrella insurance comes in.

What Umbrella Insurance Does

Umbrella insurance provides extra liability protection above your existing policies.

For example:

Auto policy liability limit: $250,000Umbrella policy: $1,000,000

If you’re sued after a serious accident, the umbrella policy activates once the underlying policy limits are reached.

Situations Where Umbrella Coverage Helps

Umbrella policies may protect you if:

• Someone is seriously injured on your property• You cause a major auto accident• A dog bite results in a lawsuit• A defamation claim arises from social media

Who Should Consider Umbrella Coverage

Umbrella policies are especially valuable for people who:

• Own a home• Have teenage drivers• Have significant savings or assets• Own rental property

Many umbrella policies provide $1 million in coverage for roughly the cost of a few dinners out per month.