Umbrella Insurance

The Ins and Outs of Umbrella Insurance


There is always the chance of being the cause of an accident that has the consequence of serious injuries, disability or even death. All it takes is a quick text message from behind the wheel and it’s all over. Then comes the litigation. Once you find yourself in such a situation, you are not able to acquire more insurance protection to cover the damages, so the time is now to act upon acquiring the safety of extra insurance coverage to be fully protected. This is how good umbrella insurance can be the coverage that saves you from financial ruin.


An umbrella policy provides extra layers of liability protection for bodily injury or property damage, generally in increments of 1 million dollars. Should one’s standard policy limits be exhausted as a result of a lawsuit, umbrella coverage is what will cover what the policy limits do not. When you have that extra level of supreme protection afforded by umbrella coverage, you, your family and your assets are far better safeguarded.

How Much?

The entry level of umbrella coverage starts at $1 million but and most providers will offer coverage up to $5 million. Often time the first $1 million will only cost you around $200 per annum. Every $1 million increment over that will cost another $100 or so. This added layer of coverage can also protect your home, your boat and more. Many plans even cover claims of libel, slander, invasion of privacy, false arrest and so on.

Who Benefits

Generally speaking, the policyholder, his or her spouse and children are all protected under an umbrella plan. Note that insurers will each have their own umbrella insurance exclusions, so be sure to become familiar with your policy details. All can benefit from this coverage, but if you have a large number of assets, umbrella coverage is especially right for you, especially when considering how relatively affordable this extra added protection can be.