A Guide to Personal Umbrella Insurance

February 21, 2022

You never know when it might rain, so it’s always best to carry an umbrella. Similarly, you cannot know all of your liabilities until they are exposed, so it’s best to invest in personal umbrella insurance. While the need for home or auto insurance may be self-evident, some people wonder — is an umbrella policy a waste of money? The answer depends on what kind of liability coverage you need. An umbrella policy is a unique type of insurance that includes a variety of different situations, and it often features higher coverage limits, too. Read on to see whether a personal umbrella policy is right for you.

Who Can Benefit from Umbrella Insurance?

For most people, personal umbrella insurance may not immediately seem like it’s necessary. If you drive, you have auto insurance. If you own a home, you have home insurance. If you rent, you have renter’s insurance. These policies cover all of the major liabilities in your life, right? Why would you need additional insurance? Many people, in fact, can benefit from the coverage provided by an umbrella policy. Unlike a standard insurance policy, it covers situations such as mental harm, international liabilities, the cost of legal defense, and a range of other liabilities that you may someday need coverage for.

What Is Covered Under Personal Umbrella Policy?

In addition to the aforementioned coverages, an umbrella policy can protect you against liability claims from others. If you dog happens to bite a neighbor, for example, an umbrella policy will typically provide coverage that other policies wouldn’t. Similarly, if a person alleges that you’ve committed libel based on a social media post, you can benefit from coverage for the cost of your defense. Unique situations like these make an umbrella policy remarkably beneficial.

Is an Umbrella Policy Worth the Investment?

Though the benefits are clear, you might find these scenarios far-fetched. Indeed, you may never find yourself being sued for an Instagram insult — but that doesn’t mean it’s a bad investment. Is the cost of an umbrella policy worth the coverage it provides? In short, yes. Many umbrella policies are available with annual premiums between $150 and $300. This figure is a fraction of the potential cost of any liability. Umbrella coverage is clearly a wise investment for any individual.

How Do I Find the Right Umbrella Policy for Me?

If you think you might benefit from an umbrella policy, finding the best coverage should be your first priority. Consult with an insurer before you commit to a policy and ask for details about the coverage limits, monthly premium, and general terms. With this information in hand, you can compare several policies and find the umbrella insurance that best meets your needs.

About Brooks, Todd & McNeil

Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best and most affordable policies from a variety of providers. Our dedicated facilitators are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.