Do You Need a Personal Umbrella Policy? ☂️

A Personal Umbrella Policy provides extra liability protection beyond your primary insurance policies — such as your homeowners, renters, or auto insurance. Think of it as an extra layer of protection that shields your assets when your other insurance limits aren’t enough.

How Does a Personal Umbrella Policy Work?

Here’s a simple example:
You cause a serious car accident. The damages and medical expenses total $600,000, but your auto insurance only covers $300,000 in liability. Without additional coverage, you’d be personally responsible for the remaining $300,000.

A Personal Umbrella Policy steps in to cover those excess costs, preventing you from having to use your personal savings, home equity, or other assets to pay out of pocket.

Umbrella policies may also cover situations that standard policies exclude, such as:

  • Slander or libel claims

  • False arrest or wrongful detention

  • Certain personal liability claims not covered elsewhere

Who Should Consider a Personal Umbrella Policy?

While anyone can benefit from added liability protection, there are certain situations where an umbrella policy becomes especially important:

1️⃣ High Net Worth Individuals

If you have significant assets — like a valuable home, retirement accounts, investments, or savings — you have more at risk if you face a lawsuit. A Personal Umbrella Policy can help protect your wealth from unexpected legal claims.

2️⃣ Participation in High-Risk Activities

Some activities increase your chance of facing a liability lawsuit, including:

  • Owning a swimming pool or trampoline

  • Hosting frequent gatherings or parties

  • Owning multiple properties or rental units

  • Participating in high-risk sports or hobbies

  • Serving on boards or volunteer organizations

3️⃣ Concern About Legal Exposure

Even if your assets are modest, legal defense costs alone can be financially devastating. An umbrella policy offers peace of mind by covering:

  • Legal defense fees

  • Settlement costs

  • Judgment amounts exceeding your primary policy limits

How Much Coverage Do You Need?

Most umbrella policies offer coverage starting at $1 million, with options to increase in $1 million increments. The right amount depends on your financial situation, lifestyle, and comfort level with risk.

The good news? Umbrella policies are typically very affordable for the amount of protection they provide.

Get Expert Guidance ‍

If you’re unsure whether a Personal Umbrella Policy makes sense for you, we can help. Our licensed agents will:

  • Review your existing insurance policies

  • Assess your liability exposure

  • Recommend appropriate liability limits

Contact us today for a free, no-obligation review of your personal insurance needs.

Michael Vereecke, CLCS
President/Agent @ Customers First Insurance Group
586-221-6870