What is Umbrella Insurance and should I consider it?

When a claim occurs and someone decides they want to sue you, an Umbrella policy could be the most important decision you’ve made. An Umbrella policy sits over (Umbrella’s over) the underlying personal policies such as Auto, Home, RV, Boat, Motorcycle, etc.). You can choose the level of coverage you want (usually between $1M to $5M) and these policies aren’t super expensive for the coverage and peace of mind they provide.

If either of these scenarios applies to you, you should definitely consider an Umbrella policy:

• You have savings and investments to protect. “You don’t have to be a millionaire to be sued like one” is a great reminder that liability protection isn’t just for the ultra rich…it’s for anyone who doesn’t want to lose the savings they’ve accumulated or their future earnings.

• You have any increased risks that could lead to a lawsuit situation. For example, if you have any higher risk drivers or driving scenarios (young drivers or those with accidents or tickets in the past few years), you should really consider an Umbrella policy. If you have a pool and/or host people at your home for gatherings, you should really consider an Umbrella policy. The more activities you have with or around others, the more “fun” toys that could lead to an accident also come into play.