Should I get Umbrella Insurance?

Maybe you have been told that you should get Umbrella Insurance? Maybe you heard about Umbrella Insurance and wondered exactly what it is? Maybe you have asked yourself “should I get Umbrella Insurance?” Hopefully I can help you make that decision.

First, What is Umbrella Insurance?

Umbrella Insurance is sometimes called Excess Liability coverage. That is exactly what it is: extra liability coverage to protect you and your household if you are sued for a lot of money. It is extra coverage because you already have some liability coverage on both your home and your auto insurance and so it will kick in once the liability limits on those policies is exhausted.

Ok, so now you are probably thinking that you don’t need Umbrella Insurance because you will probably never be sued, but don’t stop reading just yet.

No one ever plans on getting sued, but

accidents happen.

And even though they are accidents, if you are held liable then your home, cars, retirement fund, and even future earnings could be at risk.

These are things that happen in every day life that you could be held liable for.

You cause an accident on the freeway that injures multiple people and damages a long line of cars.
The plumber leaving your house slips and falls on your icy sidewalk resulting in bodily injury and loss of income for his family.
Your favorite old pine tree is blown over in a storm and damages the neighbor’s house and cars.
Your dog gets loose and bites some of the neighbor children running down the street.
The neighbor kid falls while jumping on your trampoline an brakes his arm, leg, or neck.
A momentary lack of judgement and you say or write something false about someone from your town that causes them personal damages.
Your son tackles someone playing football and they are seriously injured.
Many other instances of bodily injury or property damage that you or you family cause.

How much does Umbrella Insurance cost?

It is very affordable for how much coverage it offers you. $1,000,000 of excess liability coverage can usually be found for around $200 a year, depending on individual circumstances.

You do have to have a certain amount of underlying liability coverage on your home and auto insurance policies, so there may be additional costs in upping those coverage amounts as well.