A Personal Umbrella policy is a type of insurance coverage that provides additional liability protection beyond the limits of your primary insurance policies, such as your homeowners, renters, or auto insurance. It acts as an “umbrella” to extend your liability coverage in case you’re sued for damages or injuries caused to someone else.

Here’s how it works: Let’s say you’re involved in a car accident where you’re at fault, and the resulting damages and medical expenses exceed the liability limits of your auto insurance. If you have a Personal Umbrella policy, it can provide additional coverage to help pay for those costs that go beyond your auto insurance limits. It can also provide coverage for certain situations that may not be covered by your primary policies, such as slander, libel, or false arrest.

Determining if you need a Personal Umbrella policy depends on various factors, including your lifestyle, assets, and potential risks. Here are some situations where having a Personal Umbrella policy might be beneficial:

  1. High net worth: If you have significant assets, such as a valuable home, investments, or savings, you may want additional liability protection to safeguard those assets in case you’re faced with a lawsuit that exceeds your primary insurance limits.
  2. Involvement in high-risk activities: Engaging in activities that carry a higher risk of accidents or injuries, like owning a swimming pool, hosting social events, or participating in extreme sports, increases your liability exposure. A Personal Umbrella policy can offer extra coverage in these situations.
  3. Liability concerns: If you’re worried about potential lawsuits and want an added layer of protection, a Personal Umbrella policy can give you peace of mind knowing you have additional coverage if you’re ever sued.

To determine if you need a Personal Umbrella policy, consider discussing your specific situation with one of our Licensed agents who can assess your needs, evaluate your existing coverage, and recommend appropriate liability limits. We can help you understand the potential risks you face and whether a Personal Umbrella policy is a sensible option for you.

Michael Vereecke, CLCS

President/Agent @ Customers First Insurance Group