Umbrella Insurance: Extra Protection for Your Family
A personal umbrella insurance policy provides an additional layer of liability protection beyond what your auto and homeowners insurance provide. In today's litigious society, umbrella insurance is one of the most valuable and affordable ways to protect your family's financial future.
What is Umbrella Insurance?
Umbrella insurance is excess liability coverage that kicks in when the liability limits on your auto, home, or boat insurance are exhausted. It provides additional protection—typically starting at $1 million—at a relatively low cost.
What Does Umbrella Insurance Cover?
- Bodily injury liability: Medical bills, lost wages, and pain and suffering for others injured in an accident you cause
- Property damage liability: Damage you cause to someone else's property
- Personal liability: Claims of libel, slander, defamation, or invasion of privacy
- Legal defense costs: Attorney fees and court costs even for frivolous lawsuits
- Landlord liability: Claims from tenants if you own rental property
Why You Need Umbrella Insurance
Consider these scenarios where umbrella insurance could save your financial future:
- You cause a serious car accident that injures multiple people, and medical bills exceed your auto insurance limits
- A guest is seriously injured on your property and sues for more than your homeowners policy limits
- Your dog bites someone and you're sued for damages
- Your teen driver causes an accident with significant injuries
- You're sued for defamation over a social media post
Who Should Consider Umbrella Insurance?
Umbrella insurance is especially important if you:
- Have significant assets (home equity, savings, investments) that could be at risk in a lawsuit
- Have teen drivers on your auto insurance
- Own a swimming pool, trampoline, or other attractive nuisances
- Own rental properties
- Have a high-profile job or public presence
- Frequently host guests or events at your home
- Own watercraft, ATVs, or other recreational vehicles
How Much Does Umbrella Insurance Cost?
Umbrella insurance is surprisingly affordable. A $1 million policy typically costs between $150-$300 per year, and additional million-dollar increments are even less. For a relatively small premium, you get substantial peace of mind.
Requirements for Umbrella Insurance
To qualify for umbrella insurance, you'll typically need to maintain minimum liability limits on your underlying policies:
- Auto insurance: Usually $250,000/$500,000 bodily injury liability
- Homeowners insurance: Usually $300,000 liability
Get an Umbrella Insurance Quote
The Steele Agency can help you determine how much umbrella coverage you need and find competitive rates. Contact us for a free umbrella insurance quote and protect your family's financial future.
