Even if you carry Personal Liability Insurance for your family, you might face a repair, settlement, or judgment in excess of your coverage limit. Without Personal Umbrella Insurance (also sometimes called Umbrella Liability Insurance or Excess Liability Insurance), you would have to pay the uncovered expenses out-of-pocket.

How Does Personal Umbrella Insurance Protect Your Family?

For a single premium, a Umbrella policy adds another layer of protection to any of several other policies that you might carry, including Home Owners General Liability, Condo or Renters Liability, and Auto or RV (Recreational Vehicles) Liability policies. For instance, if you have $1 million in General Liability coverage and a covered claim is settled for $1.5 million, your Personal Umbrella Insurance policy would pick up the $500,000 not covered by your General Liability policy.

Do I Need an Umbrella Policy?

You may be able to protect more of your assets by investing in an umbrella policy than you would with ordinary insurance. If you face a legal settlement for an amount in excess of your standard insurance, an umbrella policy could protect you from having to drain your bank account and sell your assets to cover the cost.

The main benefit of purchasing Personal Umbrella Insurance, rather than opting for higher limits on your existing policies, is that Umbrella Insurance tends to be more cost-effective: you can spend less each month on premium payments to enjoy significantly greater insurance protection. In addition, you can expand your coverage limits on several policies through a single Umbrella policy.