Who Should Consider Buying Umbrella Insurance?

A personal umbrella insurance policy is built to extend liability protection beyond the limits on your homeowners, auto or renters insurance. It may also cover certain claims that the underlying policies do not, such as libel, slander and certain personal liability claims.

Why Do I Need a Personal Umbrella Policy?

Since liability claims can arise from ordinary circumstances, umbrella insurance can benefit any household. Homeowners, parents of young drivers, pet owners and anyone who coaches youth sports or volunteers regularly may face elevated liability exposure. If you rent out a property, host frequent gatherings or have significant personal assets you want to financially protect, you should also consider securing umbrella coverage. For renters, umbrella insurance can offer additional liability protection when legal claims go beyond the limits of renters insurance.

A few scenarios where umbrella insurance typically provides coverage include:

• A guest slips and falls at your home, and the medical bills exceed your homeowners insurance liability limits.
• You cause a serious car accident, and the injured party sues for damages beyond your auto policy’s coverage limits.
• Your dog bites a neighbor, and the resulting lawsuit exceeds your standard policy limits.
• A teen in your household causes property damage or injury, and the resulting costs are more than what your existing policies cover.

How Much Personal Umbrella Insurance Should I Have?

The right amount depends on your net worth, income and overall liability exposure. Typically, policyholders are advised to carry enough coverage to financially protect their total assets. Local factors may also influence your risk exposure. High litigation rates, local jury award trends or the specific activities common in your community can affect how much liability coverage makes sense for your situation.

Secure Coverage That Fits Your Needs

Lamas Insurance Agency can help you assess your insurance needs based on your lifestyle, assets and the gaps in your current policies. Contact us today to schedule a consultation.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.