Why Everyone Needs Personal Umbrella Insurance: Protecting Your Assets Beyond Basic Coverage

Personal umbrella insurance may help protect your assets by providing an extra layer of liability coverage beyond the limits of your standard home, auto or boat insurance policies. This type of insurance is essential for anyone looking to protect their finances in the face of unexpected events.

What Do Personal Umbrella Policies Cover?

To purchase an umbrella policy, you typically need a certain minimum level of liability coverage on your underlying policies, such as home or auto insurance. Here are some key features personal umbrella policies generally include:

• Excess liability coverage—This may kick in when the liability limits of your underlying policies (like homeowners or auto insurance) are exhausted. It can cover legal fees, court costs and any settlements or judgments against you.

• Broader coverage—This may cover incidents that your standard policies might not, such as libel, slander and false imprisonment.

• Worldwide coverage—Many umbrella policies can offer protection even when you’re traveling abroad.

• High limits—These policies usually start at $1 million in coverage and can go higher, providing significant financial protection.

• Personal injury—This can include nonphysical injuries like defamation, which your other insurance policies might not cover.

If you’re held responsible for significant property damage or injury, your standard policy limits may not cover the total cost. In these cases, a personal umbrella policy may cover excess losses, potentially limiting the financial impact of a covered incident.

Choose Alliance General Insurance Agency

If you’re looking for an insurance policy or want to assess if your current coverage is sufficient, reach out to our team today.