The monetary consequences of the risks you and your family take each day are relatively unknown. And because it is difficult to pinpoint, how can you be certain your current liability insurance offers enough protection?
The Basics of Personal Umbrella Liability Policies
If you are found to be legally responsible for injuring someone or damaging their property without a personal umbrella liability insurance policy, anything beyond the limits of your standard liability insurance coverage will come out of your own pocket. Standard liability insurance generally includes homeowners, renters, auto and watercraft policies.
A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policies. It protects your personal assets by kicking in when your standard liability coverage is exhausted.
Who Needs an Umbrella Liability Policy?
High-risk activities or hobbies can increase your odds of being sued—such as having a teenage driver, owning a swimming pool or entertaining frequently. It is a good idea to supplement your insurance with a personal umbrella liability policy.
How Much Coverage Do I Need?
You will want to consider not only your total personal assets but also your potential personal risks. Do you operate a business in your home and have employees and clients to your home on a regular basis? Does your profession or location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage that makes the most sense for you. Coverages start at $1 million, and can go as high as $10 million.
How Much Does Coverage Cost?
When compared to the added coverage you gain, additional liability insurance is relatively inexpensive. Depending on the policy value and your personal risk factors, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter.
Get the additional protection you need with a personal umbrella liability policy.