What Is Personal Umbrella Insurance?

If a claim or legal judgment exceeds the liability limits set by your existing policies (e.g., auto, home), you could face severe financial hardship. A personal umbrella insurance policy provides an additional layer of protection on top of your current coverages to keep you financially safe if the worst happens.

What Is Personal Umbrella Insurance?

Personal umbrella insurance may help pay for costs beyond the limits of your other liability policies. These could arise from allegations that you or your family are responsible for the bodily injury or property damage of a third party. Generally, personal umbrella insurance policies have a limit of $1 million, but policies with greater limits can often be purchased.

Is Personal Umbrella Insurance Worth It?

Although it may seem unlikely that a claim or judgment will exceed your existing policies, extra financial protection can provide peace of mind and greater financial security in society’s current litigious atmosphere. Personal umbrella insurance is generally less expensive than other types of insurance, and it helps protect you and your family—including relatives and other dependents living in your home—from extreme financial hardship if an accident results in substantial medical bills, property damage or legal fees.

A personal umbrella insurance policy may cover the following:

• Property damage if the property or possession of a third party is damaged or destroyed

• Personal injury resulting from allegations of privacy invasions, defamation of character, libel, mental anguish or false arrest

• Bodily injury and related costs, including medical fees, lost wages and funeral expenses

• Legal costs if your family is sued over allegedly causing property damage or bodily injury

Who Needs Personal Umbrella Insurance?

Personal umbrella insurance may benefit anyone looking for additional protection. But some people face greater risk exposures, making them more likely to experience a significant liability claim (e.g., owning a swimming pool, throwing large parties).

We’re here to help you better understand your risk. Contact DRD Insurance Agency to have your insurance questions answered.

Finding the Protection You Deserve

At DRD Insurance Agency, we’re committed to finding you and your family the insurance you need. Call us today to learn more about our coverage solutions and receive a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.