Who Should Have Personal Umbrella Insurance?

While we often purchase various insurance policies to protect ourselves and our assets, sometimes the coverage limits of these policies may not be enough to cover significant claims or lawsuits fully. Personal umbrella insurance can serve as an essential safety net.

Contact Academy Insurance Agency in Leesburg, Virginia, to learn how personal umbrella insurance can help protect your financial security.

Understanding Personal Umbrella Insurance

Personal umbrella insurance is an additional layer of liability coverage that goes beyond the limits of your primary insurance policies, such as auto, homeowners or renters insurance. It may help protect you from catastrophic events or large liability claims that could otherwise jeopardize your assets and financial stability.

How Personal Umbrella Insurance Works

Personal umbrella insurance typically kicks in when the liability limits of your primary insurance policies are exhausted. It may help cover a wide range of liability claims, including bodily injury, property damage and even certain lawsuits, up to the policy’s limit.

Who Needs Personal Umbrella Insurance?

Personal umbrella insurance is appropriate for various individuals, including the following:

• Frequent travelers—If you travel frequently for business or pleasure, the chances of being involved in an accident or liability claim increase. Personal umbrella insurance provides an extra layer of protection worldwide, ensuring you’re covered wherever you go.
• Homeowners—Personal umbrella insurance can help bridge the gap if your homeowners’ insurance liability limits are exceeded.
• Parents—If you have teenage drivers in your household, personal umbrella insurance can provide peace of mind. Teen drivers are statistically more prone to accidents, and the potential liability claims can be significant.
• Pet owners—Even the most well-behaved pets can sometimes cause accidents or injuries to others. Personal umbrella insurance can provide liability coverage for incidents involving your pets.
• Landlords—You may face additional liability risks if you own rental properties. Personal umbrella insurance can help protect you from potential lawsuits arising from accidents or injuries on your rental property.
• Frequent entertainers—Personal umbrella insurance can provide additional coverage for liability claims related to your social activities.
• Volunteers or board members—If you volunteer for a nonprofit organization or serve on a board, personal umbrella insurance can protect you from personal liability claims related to your volunteer activities.

Cost of Personal Umbrella Insurance

Personal umbrella insurance costs vary depending on factors such as the coverage limit, your risk profile and the number of assets you need to protect. Generally, umbrella policies are relatively affordable, considering their substantial coverage. The peace of mind and financial protection they provide outweigh the cost for many individuals and families.

Contact Us

Contact Academy Insurance Agency today to get a personal umbrella insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.