What is an “Umbrella” Policy?

‘Umbrella Policies’ are, quite literally, a second layer of liability defense in the event that you find yourself in a situation requiring it. With only a few exceptions, in order to qualify for an ‘umbrella’ policy, you must first also have your auto insurance with the same company with at least $100,000 or $250,000 of liability.

Unfortunately, we live in a very litigious society and lawsuits are everywhere. Larger amounts of money are being awarded than ever before and all property insurance policies have a stated limit on the amount of liability insurance they contain. If a loss or litigation should occur and you are accused of being at-fault, umbrella insurance is designed to give added liability protection, from $1M to $5M, above and beyond the limits of the underlying policy. This extra protection is designed to “kick-in” only when the liability amount on the underlying policy has been exhausted.

Learn how an Umbrella policy differs from a ‘Comprehensive Personal Liability’ policy.

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