Umbrella Insurance

Umbrella insurance provides an extra layer of security to your insurance plan. If you or a family member are involved in a serious car accident or someone is badly hurt on your property, you could easily be looking at a bill of several hundred thousand to several million dollars. One umbrella policy provides additional coverage on top of your underlying policies like your auto or home insurance.

A typical auto insurance policy has a maximum liability limit of $500,000. If you are legally responsible for a $1,000,000 settlement, your auto insurance would only pay the first half and you’d be responsible for the other half. An umbrella insurance policy picks up where your underlying insurance stops, meaning your auto policy would pay half and your umbrella policy would pay the remainder up to your policy limit – typically $1M to $5M.

Cost

The exact cost of an umbrella policy will vary based on many factors, including the number of vehicles and properties you own, the amount of drivers covered, the age of those drivers, and their driving history. That being said, a million dollars of umbrella coverage can often be added for less than $25 per month.

If you’d like to learn more about Umbrella Insurance, browse our blog content below or check out this article from the Insurance Information Institute.