Many insureds find themselves asking “what is umbrella insurance?” No, it isn’t for actual umbrellas! The name comes from the way the policy works: coverage over and above your underlying policies. A personal umbrella policy provides additional liability coverage on top of your home and auto policies. Liability coverage comes into play if you are found financially responsible for the injury or property damage of another. For example, a neighbor may slip and fall while at your home. Or maybe you are in an auto accident or accidentally drive through your neighbors wall. These types of situations is when your umbrella policy would provide coverage!
Do I Need a Personal Umbrella?
Wondering if you need umbrella insurance? Consider whether or not the liability limits on your home and auto policies are enough to cover all your assets. In the event of a lawsuit, the more assets you have, the more you have at risk and want to protect. If your liability and financial responsibility ever exceed your other policies, your umbrella insurance can provide additional coverage. Depending on your carrier, getting an umbrella policy can be cheaper than raising your underlying limits. Here at Farmers were offer umbrella coverage in $1 million increments, up to $10 million! While millions may sound like a lot, it could be a realistic figure depending on the extent of injuries or damages.
Did you also know that Umbrella coverage follows you anywhere in the world? A standard Umbrella policy provides additional liability coverage for your primary residence and two vehicles. Additionally, it can cover small sailboats and motorboats with fewer than 50 HP. But Umbrella doesn’t stop there! Optional Umbrella coverage can be added to secondary or vacation homes, rental properties, recreational vehicles, personal watercraft, vacant land, and uninsured motorists!