Who Needs Umbrella Insurance?

Even the most risk-averse individuals among us still need to safeguard our financial security ahead of the unforeseen. Costly claims could result in unexpected losses and gaps in coverage, even if you have adequate homeowners and auto insurance policies.

If you have significant savings, own a business, or fit into any number of vulnerable categories, it’s important to minimize risk and protect your hard-earned assets with additional personal liability coverage, known as umbrella insurance.

What Benefits Does Umbrella Insurance Offer?

Umbrella insurance coverage extends beyond the limits of your home, auto, and other insurance policies you may have, such as boat or RV insurance, to cover losses associated with unplanned events, including vehicle accidents, dog bites, injuries on your property, and slander or libel. This supplemental coverage can be added to your standard policies, securing essential coverage that will kick in when your other policies are exhausted.

Do I Need Umbrella Insurance?

Even if you have primary insurance policies, umbrella insurance can protect you when your underlying policy limits are exceeded, extending to auto or other broader protections. Anyone who owns anything of value is vulnerable to financial losses if any number of liability claims arise.

It’s important to consider if you are exposed to risk that may lead to potential claims that you caused someone’s injury or property damage. These types of lawsuits, or the need to finance your defense, can result from different events mentioned above.

The financial burden for insured individuals could be unmanageable without the secondary layer of protection that umbrella insurance provides. All individuals should talk to a trusted insurance agent about getting personal umbrella insurance, but especially those:

• With a net worth higher than $500,000
• Who own dogs or pets
• Who have a swimming pool or trampoline
• Who do not have home security or surveillance systems
• Who frequently travel outside the U.S.
• Who own recreational vehicles such as boats, jet skis, or dirt bikes
• Who coach youth sports
• Who regularly talk about other people or post reviews
• Who frequently host guests at your home
• Parents and guardians of inexperienced drivers
• Volunteers or board members