Personal Umbrella Insurance
Your home, your car, and your lifestyle represent years of hard work. But what if an unexpected event puts everything you’ve built at risk? Are you fully protected?
Personal umbrella insurance from The Huneycutt Group offers an additional layer of protection beyond the limits of your existing policies, ensuring your assets stay safe.
What Is Personal Umbrella Insurance?
Personal umbrella insurance is a type of liability insurance that provides additional coverage when the limits of your standard home or auto insurance policies are exhausted.
If you’re involved in a significant accident or lawsuit, an umbrella policy helps protect your assets, offering extended liability coverage that can cover legal fees, medical bills, and damages beyond your primary policies.
Why You Might Need An Umbrella Policy
Unexpected accidents and lawsuits can happen to anyone, and when they do, the costs can quickly exceed the limits of your standard insurance policies.
Whether you’re involved in a car accident, someone gets injured on your property, or you’re facing a lawsuit for libel, the financial implications could be overwhelming.
High-net-worth individuals, medical professionals, and lawyers often face greater financial risks due to the potential of lawsuits or liability claims.
A personal umbrella policy provides additional protection, ensuring you’re not left financially vulnerable when your basic coverage isn’t enough.
Here’s a real-life scenario of how a personal umbrella policy can help:
Imagine you’re hosting this week’s college football party, and a friend of a friend accidentally falls down the stairs. If their medical bills and legal costs exceed the liability coverage in your homeowners’ policy, you could be on the hook for the remaining amount.
Without umbrella coverage, you might have to tap into your personal savings or even sell assets to pay for damages. A personal umbrella policy would step in to cover those extra costs, protecting your assets and lifestyle.
What An Umbrella Policy Covers
A standalone personal umbrella policy can provide additional liability coverage in cases such as:
Major Auto Accidents
If you’re at fault in a serious car accident and the damages exceed your auto policy limits, an umbrella policy steps in to cover the remaining costs.
Liability
If someone sues you for injuries they sustained on your property or due to your actions, this policy covers legal fees and settlements beyond your home insurance.
Property Damage Claims
In the event that you’re responsible for damaging someone else’s property, an umbrella policy can cover the costs when your standard homeowners policy is exhausted.
Legal Defense Costs
Even if a lawsuit is frivolous, legal defense costs can add up. Umbrella insurance helps cover attorney fees and court costs.
Libel and Slander Lawsuits
If you’re sued for defamation, an umbrella policy helps protect you by covering legal fees and potential damages.
Who An Umbrella Policy Covers
A Personal Umbrella Policy (PUP) doesn’t just protect you, but it can also extend to your family members. Whether it’s your spouse, children, or other members of your household, a PUP helps ensure everyone is protected in the event of a covered incident.
What A PUP Doesn’t Cover
While personal umbrella insurance offers extensive coverage, there are some exclusions. A PUP won’t cover:
- Contracts or agreements
- Your own personal injuries
- Business-related liabilities (this requires a commercial policy)
- Intentional harm or damage
How To Get A Quote
Getting the right umbrella policy is straightforward. At The Huneycutt Group, we’ll assess your needs and guide you to the appropriate level of coverage for your situation.
Contact us today for a personalized quote and secure your financial future.
Minimum Coverage Needed To Get A Quote
Before qualifying for a personal umbrella policy, insurers often require that you carry minimum levels of liability coverage on your home and auto insurance policies.
These minimum auto insurance limits could be $100,000 per person/$300,000 per accident or if you have younger drivers the minimum underlying coverage requirements could be $500,000.
This ensures you have adequate base protection before relying on an umbrella policy for additional coverage.
How Much An Umbrella Policy Costs
The cost of personal umbrella insurance depends on the amount of coverage you need and the assets you’re protecting. An umbrella insurance policy with $1 million liability coverage will usually cost between $150-300 per year.
Umbrella policies are typically very affordable, especially considering the large amounts of coverage they provide.
For high-net-worth individuals or professionals in fields prone to lawsuits, the peace of mind that comes with this additional protection is priceless.
Personal Umbrella Insurance FAQs
Is a personal umbrella policy worth it?
Absolutely! A personal umbrella policy is often worth it for the additional protection it provides at a relatively low cost. It offers an extra layer of liability coverage that kicks in when the limits of your home, auto, or other insurance policies are exhausted.
What is the maximum umbrella policy?
Umbrella insurance policies typically offer coverage starting at $1 million, but you can increase this amount depending on your needs. Many insurers offer umbrella policies with coverage limits up to $10 million or more for those looking for higher protection.
Do I need umbrella insurance if I have high liability coverage?
Even if you have high liability coverage on your existing policies, an umbrella insurance policy provides additional protection that can extend beyond those limits.
How does an umbrella policy pay out?
An umbrella policy pays out after the liability limits of your primary insurance policies (such as home or auto) are exhausted. Once your standard policy limit is reached, the umbrella policy kicks in to cover the remaining costs, up to its own coverage limit. It can also pay for legal fees and defense costs in the event of a lawsuit.
