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Understanding Umbrella Insurance: 5 Things You Need To Know

To many, cost is a big factor when it comes to purchasing insurance. Often times, people don’t consider additional coverages because they think they can’t afford them or don’t think they need them. Did you know, however, that having additional liability protection in the event of an accident can actually SAVE you money. In this blog we’ll help you understand how personal umbrella insurance works, along with 5 things you need to know about this added protection.

Why Consider Umbrella Insurance?

Picture this: You and your dog are playing a game of fetch in your front yard when your elderly neighbor walks by. She tentatively waves to you, which, of course, Fido misreads as a sign she wants him to say hello. Before you can grab hold of his collar, he sprints over to her, jumps to give her a big wet kiss, and then down she goes. Unfortunately, as sweet and understanding as she is, she is also clearly in pain. You call 911, and an ambulance arrives shortly to take her to the hospital where she finds out she’s broken her hip and is going to need surgery, followed by weeks of rehab. In addition, she is going to require at-home visits from an occupational therapist and overnight help when she finally moves home. Fido made a big mess, unintentionally of course, and you’re going to have to pay for all of it! Do you think your home insurance policy has enough liability coverage to pay for all of your neighbor’s medical expenses?

The excess liability coverage offered by an umbrella insurance policy fills in the gap that is left when you hit the liability limit of your auto or home insurance policy. Umbrella insurance acts like a safety net and can be the difference between you losing or keeping your home, your car and much of your future earnings in the face of excessive legal or medical bills.

5 things you need to know about Umbrella Insurance

1. Protect your assets — If you are found responsible for an accident and the limits of your insurance policy are exceeded, you would be on the hook for the remaining legal or medical bills. If you don’t have the money to pay for this, you could lose assets like your home, vehicle, possessions or even future earnings. Having an Umbrella Insurance policy, however, provides additional liability protection, further protecting your assets.

2. Extends your existing coverages — Umbrella insurance extends the liability limits of your existing home or auto insurance policies. This means that anything that is covered by these insurance policies will be covered with the higher limits of your umbrella policy once the limits of your home or auto policy is reached.

3. It isn’t as expensive as you'd think — A personal umbrella policy is an affordable way to protect you and your family against costly legal fees, medical bills, settlements and more. Starting at $255 a year, you could get up to $1 million dollars in additional liability coverage!

4. Multiple levels of coverage — There are multiple levels of coverage available, so you can talk to your insurance agent about what best fits your needs. To evaluate your coverage needs, we will start by asking you a series of questions that will give us insight into your lifestyle and the risks that may come with it. For more in-depth information on what those risks may be, visit our Personal Umbrella Insurance page on our website:

5. Feasible for business too — Umbrella insurance isn’t just limited to individuals and families. Business Umbrella insurance is a secondary policy that can cover a broad variety of contingencies for your business.

Every person and policy is going to be different. Be sure to talk to your Cushman insurance agent — we’ll make sure you are fully protected and that you completely understand the details of your policy and what it covers in the event of a disaster:


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