Homeowners typically protect their property with homeowners insurance. However, it is important to understand the limitations of this coverage, so that you can ensure your property has all the protection available. 

An umbrella insurance policy can offer additional protection, but most homeowners do not know what this is and why it is so important. Keep reading to discover everything you need to know about umbrella policies and what they can do for you. 

Defining Umbrella Insurance in Simple Terms 

What is umbrella insurance? The short answer is that it is an additional form of liability insurance coverage you can add to your current policy. Therefore, while it is referred to as an “umbrella policy,” it may be helpful to think of it as a way of extending your existing home coverage. 

All homeowner policies come with some form of liability coverage. In fact, one of the hidden costs of home ownership is being responsible for the injuries of others on your property. Liability comes in handy if someone gets injured at your home and holds you liable, as the existing coverage can help pay for their medical bills and, if needed, your court costs. 

Umbrella insurance takes that even further, by adding an additional layer of liability coverage on top of the standard amount you receive with your home insurance. 

The Crucial Role of Umbrella Insurance in Your Financial Safety Net 

One of the primary functions of different types of homeowners insurance is to serve as a “safety net” when you are planning your financial future. It is one thing to set money aside in a savings account to help with future expenditures and the occasional emergency. However, it is unreasonable for the average person to save up enough for major house repairs after a covered event or a burdensome lawsuit.  

No umbrella policy explanation would be complete without answering the obvious question: Why would someone need more liability coverage than they already have? The answer is that it increases the size of your financial safety net. If your existing liability limit falls short (for example, you are being sued for $50,000 more than your limit), you may be faced with a significant out-of-pocket expense. 

Fortunately, this type of plan can help cover the excess amount so that if the unexpected happens, your finances remain intact. 

Understanding the Scope of Umbrella Insurance 

It is one thing to have answers to classic questions like “What is an umbrella insurance policy?” However, knowing exactly how such a policy works in the real world is another thing. To help you decide whether you need your own umbrella policy and how to best take advantage of it, it is important to understand the full scope of this type of plan. 

Incidents Typically Covered by Umbrella Insurance 

One of the most common incidents covered by umbrella insurance involves damage caused by pets, including dog bites. Whether a dog bite happens in the home or somewhere else, like a local park, you are legally responsible for damage caused by your pet. All it takes is a significant bite, and a few medical bills to cause someone to sue you. An umbrella policy helps protect you in case the damage exceeds your existing coverage limits. 

Another common incident is someone injuring themselves while inside your home. In some cases, the injured party may hold you responsible because they believe something you did or did not do (such as failing to clean the stairs) may have led to the accident. Again, should the injured party decide to take you to court and have extensive medical bills, these additional policies can supplement your existing coverage as needed. 

Finally, someone could decide to sue you because their child injured themselves in your yard. It may not sound fair, but you can be held legally responsible if someone gets hurt, even if due to their own actions (for example, you may be sued if someone gets injured swimming in your pool if the gate was unlocked). As always, having as much protection as possible before things potentially go to court is essential. 

Speaking of pools, adding one is a classic example of a renovation that will require additional insurance. 

What Umbrella Insurance Covers That Standard Policies Do Not 

When it comes to your home policy, it is best to think of an umbrella policy as a supplement to your existing coverage. The new policy offers nothing that your standard home coverage already covers. Instead, it enhances a critical aspect of the policy, which is your liability coverage. By covering more than the existing limit, a new policy can offer protections above and beyond the original policy. This could make a big difference when you need it most. 

How Umbrella Insurance Complements Your Base Policies 

It is easy to see why these plans are beneficial. After all, every homeowner generally agrees that their house and finances should have more protection and not less. But how does this new policy complement existing coverage? In many cases, adding a modest umbrella policy is cheaper than increasing liability limits, giving you better protection at a better price. 

Assessing the Need for Umbrella Insurance 

Relatively speaking, the cost of adding this type of coverage to an existing policy is low. However, that does not mean that everyone should automatically go out and purchase a new supplemental policy for themselves. Instead, use the tips below to decide if you are someone who would directly benefit from this type of coverage. 

Identifying Who Benefits Most From an Umbrella Policy 

Not everyone needs this level of coverage, so how can you tell if this plan is right for you? For one thing, the added protection is great if you regularly bring guests into your home. Every new invite is a potential lawsuit waiting to happen, so if you frequently host gatherings, you may need the protection offered by an umbrella policy. 

If you are a dog owner, you should consider an umbrella policy. You never know how much damage your dog could cause and how likely someone else is to sue over the damage. Instead of taking a risk whenever you take your dog for a walk, give yourself peace of mind. 

Finally, if you are someone who drives extensively, you should consider purchasing this additional coverage. The umbrella also extends to automobile insurance, and if you end up being sued for causing damage on the road, you will be grateful for the added liability protection. 

Commercial Umbrella Insurance Explored 

What is commercial umbrella insurance? This is the same kind of policy described above, but it is intended for business owners. If you already have commercial coverage to help protect your business, you can increase your liability protection with this type of coverage. 

Commercial umbrella insurance is especially appropriate for companies with more in-person interaction with customers. For example, if your customers can come into your place of business, they run the risk of getting injured. Other businesses that will benefit from an umbrella liability policy are those with a large fleet of commercial vehicles and those engaged in hazardous industries, such as an oil refinery. 

Get a Quote on the Best Umbrella Insurance 

If you feel umbrella insurance could benefit you, reach out to an InsureOne agent to find out more. We offer the best service and affordable options, customized specifically for you. 

At InsureOne, we are known for top-tier customer service and professionalism. Give yourself peace of mind by getting a quote online. Of course, you can also pick up the phone and give us a quick call at 800-836-2240. We also welcome you to visit an InsureOne office near you. 

Many people have regular insurance for themselves and their property, but many haven’t considered umbrella insurance. This type of insurance provides invaluable protection that goes above and beyond your personal insurance policies.  

In this article, we’ll discuss why you should consider an umbrella insurance policy, as well as who needs umbrella insurance.

Umbrella Insurance Definition 

Like the name implies, umbrella insurance provides an extra layer of protection in addition to your base insurance policy. Sometimes referred to as personal liability insurance, umbrella insurance is a catch-all policy covering litigation from injury or property damage. 

The Benefits Of Personal Umbrella Insurance Coverage

While umbrella insurance is not required by law, it is ideal to have many assets to protect. For example, if you are involved in a major car accident, that’s your fault, and it causes major injuries or property damages, your assets are at risk. Accidents happen, and that’s where umbrella insurance comes in handy.

What Factors Determine The Umbrella Insurance Cost?

• Where you live – Insurance rates vary by state.

• Your net worth – Your umbrella policy should be at least the amount of your net worth or greater than. 

• You and your family’s driving records – Your family’s record of driving, including speeding tickets and accidents, may affect your umbrella insurance costs.
• The insurance company – If you don’t compare policies, you may end up paying too much for coverage. 
• Your lifestyle – Do you own a boat, a dog, a swimming pool, or ATV vehicle? If you like to participate in activities involving some risk, umbrella insurance is ideal for you.

How To Choose An Umbrella Insurance Policy

First, determine what your current policy covers and where you need extra protection. There may be exclusions that leave a gap in your coverage. This will also give you an idea of where your insurance policy did not come through to pay claims. Then, find out if an umbrella policy would cover those claims.

Get Umbrella Insurance Quotes To Fit Your Budget

Ready to begin your umbrella insurance quote search? You’ve come to the right place! InsureOne compares insurance from more than one umbrella insurance company to get you the coverage you need at an affordable price. Request a free umbrella insurance quote online or over the phone by calling (800) 836-2240.

In a lawsuit, you could lose everything, including your assets, savings, and investments. Even if you have no assets, you can be held liable for damages, putting potential assets or future earnings at risk. Getting umbrella insurance coverage can help protect you and your future.

What Is Umbrella Insurance?

As a personal excess liability insurance policy or an umbrella liability insurance policy, umbrella insurance kicks in when your other policies are maxed out. Like an umbrella protects from getting wet when it’s raining outside, an umbrella insurance policy protects your assets in the event of a costly lawsuit. 

Umbrella coverage is a secondary type of liability insurance that protects you beyond the limits of your homeowners, car, or other insurance policies. It’s an economical way to protect your financial future and assets.

What Does An Umbrella Insurance Policy Cover?

Umbrella insurance covers litigation from injury or property damage. It also protects you from associated legal costs if you get sued for damages to other people’s property or injuries. 

How Much Umbrella Insurance Should You Get?

Figuring out how much umbrella liability insurance to purchase is based on your individual situation. The best way to decide is to know how much you stand to lose in a costly lawsuit, as well as your net worth and assets.  

Is It Worth It To Get Umbrella Insurance?

Yes, especially if you don’t have enough insurance. Your minimum coverage may not be adequate in all possible situations. For example, let’s say your dog bites your neighbor, or your teenage daughter gets into an auto accident.

In these cases, umbrella insurance coverage protects you against expensive litigations. It can even protect you in cases of slander and libel – for example, if a restaurant decides to sue you for leaving a bad review. 

The premiums for umbrella insurance are surprisingly affordable for the amount of coverage that you get. 

The Easiest Way To Purchase Umbrella Insurance Coverage

You no longer need to call multiple insurance companies for an umbrella policy quote. InsureOne, does that work for you. Call  (800) 836-2240 to speak with an experienced representative who will provide you with the best umbrella insurance quote.

However, there is another type of insurance that is easier to overlook, and that is liability insurance. As the insured, liability insurance would help to pay for any claims that result from injuries or damage that you inflict on another party or their property. While often overlooked, liability claims can be the most costly type of claim, which is why it is so critical to have coverage. 

The best way to significantly increase your liability coverage is through an investment in an umbrella insurance policy. If you haven’t heard of umbrella coverage before, you are likely wondering, “what does umbrella insurance cover?” and “do I really need it?” 

In order to answer those questions, you may want to consider the following seven common liability claims that would be covered under umbrella liability insurance:   

1. Legal Expenses

Lawsuits are widespread, more common than you might think. If you were sued, you would have to pay defense costs, including lawyer fees, court costs, and more. 

2. Homeowners Liability

Anytime visitors come into your home, you expose yourself to a liability risk. For example, if your deck collapsed during a summer barbeque, you could be held responsible for paying for all of the injuries your guests sustained. 

3. Dog Bites and Attacks

Even the friendliest dog can attack if they are scared or provoked. Did you know that you could be held liable if your pet injures a visitor? Dog bites can be severe, particularly on children. If the damages were to exceed the limits of your homeowners policy, then your umbrella coverage would help to pay for the remaining costs. 

4. Libel or Slander

Libel refers to publishing a false statement about another party, while slander involves making false or damaging statements against another party. You may think that you would never be affected by this, but if you have ever even done something as simple as posting a negative review online, then you could potentially be at risk of facing a libel claim. 

5. Child-Related Risks

If you have children or teens in your household, it can significantly increase your liability risks. Imagine the number of expenses you could face if your child’s friend was severely injured while jumping on a trampoline or playing on a swing set in your backyard. Or consider your teen driver causing a severe accident due to inexperience. An investment in an umbrella insurance policy would ensure your assets are protected in the event of an unfortunate incident such as these examples. 

6. Landlord Coverage

While your rental properties can be a great asset to generate income, they can also be risky and costly. Did you know that your tenant could sue you for several reasons? For example, if there was black mold you were unaware of that caused your tenant health issues, it could result in a costly lawsuit that would be covered with umbrella insurance.

7. Volunteering

If you like to devote your time to helping others – believe it or not, it could open you up to increased personal liability risks. A volunteer can be sued for negligence and more.  

These are just a few examples of claims that would be covered under an umbrella policy, and they make it easy to see how quickly damages can exceed your current liability limits. Now that you know the benefits of umbrella coverage, you are likely wondering about the umbrella insurance cost. You may be surprised to learn that coverage is more affordable then you imagined. Contact a licensed agent today to obtain a quote for your umbrella policy and learn more about your options. 

If you’re looking for umbrella insurance, InsureOne can help. Get a free umbrella insurance quote online or over the phone by calling (800) 836-2240. We compare quotes from top insurance companies to get you the coverage you need at an affordable price.

What is an Umbrella Policy?

Umbrella coverage is all-encompassing insurance that extends your personal liability protection beyond the limits of your existing auto, homeowners, renters or watercraft insurance policies. It is often referred to as secondary excess liability insurance because the coverage kicks-in after your primary policy coverage is maxed out.  

How Does Umbrella Coverage Work?

To understand how umbrella coverage works, consider the example of a repairman who comes to your home to fix your alarm system and slips and falls on a broken step. If he was seriously injured and was unable to work again you could be sued and forced to pay not only his medical bills but his lost earnings. While you have liability coverage through your homeowners policy it might not be enough to cover the entire expense. An umbrella policy would help to pay the remainder of the settlement once your homeowners policy limits were exhausted.

What Does a Personal Umbrella Policy Cover?

When you purchase an umbrella insurance policy you will have the ability to select your coverage limits. A standard personal umbrella policy has $1 million limits, but you can often obtain a policy with higher limits.

In addition to extending your personal liability coverage, an umbrella insurance policy provides protection for claims that are not typically included in a homeowners policy. Your umbrella policy would protect you if you were sued for:

• Slander – making false
  statements that damage another person’s reputation
• Libel – writing false
  statements that damage another person’s reputation

How Much Does Umbrella Insurance Cost?

The cost of an umbrella policy is based on how much coverage you elect to have. The exact rates will vary from company to company and state to state; however according to the Insurance Information Institute a $1 million umbrella policy is approximately $150 to $300 per year. Premiums typically increase by $100 each year for a $1 million in additional coverage. Given this average, an umbrella policy proves to be an affordable option to significantly increase one’s personal liability coverage.

It is important to note that you cannot purchase an umbrella policy without an existing homeowners, auto or property insurance policy. You also may be required to meet a minimum limit of liability coverage on your primary policies. 

Do I Need Umbrella Coverage?

Umbrella policies are usually necessary for individuals who:

• Own property
• Have significant
  savings
• Own dangerous things
  such as pools, trampolines, dogs, RVs, snowmobiles, etc.
• Face greater risk of
  being sued – for example if you are a landlord, coach a kid’s sports team,
  volunteer, write extensive online reviews, etc.

Many peoplethink that umbrella liability insurance is only purchased by individuals with significant assets such as a large home and a big bank account. The truth is regardless of how much you have or own, a large claim or lawsuit could impact things you may not have considered such as your future earnings, retirement savings and more.

How Much Umbrella Coverage Do I Need?

Now that you understand the value of a personal umbrella policy, you may be wondering – how much coverage do I actually need? When it comes to umbrella coverage you should consider both your net worth, your assets and if you face greater risks for being sued. Lawsuits are more common than you think and they can be incredibly costly. Considering the cost and overall value of an umbrella insurance policy to ensure you are protected.

Protect what matters to you most with a life insurance policy from InsureOne. InsureOne works with top carriers to get you the coverage you need at an affordable price. Start a life insurance quote online or over the phone today by calling (800) 836-2240.