Do I Need a Personal Umbrella Policy?

A personal umbrella policy is also called umbrella insurance. This type of personal liability insurance can help protect your savings and other assets from large and potentially devastating liability claims or judgments.  

Personal umbrella coverage begins when you’ve reached the underlying liability limits of your homeowners insurance or auto insurance. Umbrella insurance can even cover liability claims such as libel, slander and false imprisonment.  

Who Needs Personal Umbrella Insurance? 

Umbrella insurance benefits almost everyone. Accidents that result in high costs can happen to anybody. Personal umbrella coverage can prevent you from personally paying for another person’s medical or legal bills if you’re found responsible.  

Umbrella insurance usually extends to other members of your household, such as your spouse, children and other relatives who live with you and don’t have auto or property insurance. 

How Does a Personal Umbrella Policy Works? 

If you’re at fault in a car accident that injures another driver, your regular auto insurance will cover the other driver up to the limit you’ve selected. But if your limit isn’t enough to cover the other driver’s medical bills, your umbrella policy would help cover the additional costs.  

An umbrella policy provides the additional coverage you need so that you aren’t trying to pay the remaining balance yourself. This extra policy helps protect your bank account, home and other personal property. 

What Is Not Covered? 

One benefit of umbrella policies is their broad coverage. However, there are some items an umbrella policy doesn’t cover, including: 

• Damage to your property—Umbrella coverage doesn’t cover personal belongings. Make sure you have enough homeowners insurance to protect your property and possessions. 

• Damage that you or a covered member of your household did purposefully—For example, if you deliberately injure a party guest at your home, umbrella insurance will not cover the lawsuit or judgment costs—and neither would your homeowners insurance. 

• Liability incurred in business or professional activities—It would be best to have business liability insurance for these incidents not covered by umbrella insurance. 

How We Can Help 

You are not legally required to purchase umbrella insurance, but it can be advantageous for people who have a lot of assets to protect or a high chance of being sued to purchase it. Call McCartan Insurance Group, Inc. at 515-633-2273 to get an umbrella insurance policy for your needs.