By, Shaun Murphy

Today we’re going to talk about umbrella coverage.

Umbrella Insurance

What is umbrella insurance? Umbrella is basically excess liability coverage. How does that cover you? Well, let’s show you – your home and your auto for example, you’ve got liability coverage. An umbrella would be liability in addition to what you carry on your home or your auto.

So for example, let’s say your homeowners policy has $300K in liability. Umbrellas mainly start at one million dollars. So if you want to protect your net worth you want to carry your liability at your home of your underlying limits of at least 300,000. We recommend $300K – $500K even $1M if you can get it with from the carrier, and then carry an umbrella on top of it.

So in essence, if you’ve got $300,000 on the house, and you’ve got $1M on the umbrella you’ve got $1.3M in liability coverage. Same on the autos. Let’s just say your limits are $250,000 / $500,000 on your automobile coverage and then you’re carrying your umbrella. That’s an additional million dollars on that liability protection to protect you.

So talk to your agent. Give us a call, we will be glad to help explain it to you and show you how it works, and it’s really not that expensive – and it’s pennies on the dollar. So hope this helps. Have a good day.