FRIDAY, APRIL 30, 2021
Your finances will grow as you age and save up money, meaning that you could face more risk when is comes to losing your assets. Protecting your accrued wealth is crucial and one of the ways you can do so is by investing in a personal umbrella liability insurance policy. 
What Is Personal Umbrella Insurance?
Personal umbrella insurance fills in the gaps left over by other liability insurances. It’s an additional policy that activates when your other liability insurance coverage reaches its maximum point. For example, if a legal settlement will cost you $2 million but your homeowners insurance only covers $1 million, umbrella insurance will come in to pay the other $1 million. Due to the umbrella nature of these policies, umbrella insurance applies to homeowners, auto and personal insurance coverages.
Who Really Needs A Personal Umbrella Policy?
Personal umbrella insurance can be useful for people in the middle or upper middle class financially. Although assets of these policyholders aren’t as drastic as upper-class members, any unexpected liability events will have a more adverse effect on these assets. Members of the middle and upper middle classes can’t always afford huge claims. If you’re in this group, losing all savings because of one accident can mean losing retirement income or money to be left over for your children after your passing.
If you’re at risk of being in this precarious financial position, you should especially consider personal umbrella insurance. Also, lawyers and those with similar high-income professions present more liability risk when it comes to claims. And if you live in a neighborhood where expensive cars are commonplace, it’s important to have umbrella insurance in case of an accident goes beyond your car insurance coverage.
What Does Personal Umbrella Insurance Cover?
Personal umbrella insurance generally covers:
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Bodily or personal injury
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Property damage
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Landlord liability
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Lawsuits (libel, slander, etc.)
What Does Personal Umbrella Insurance Not Cover?
This insurance option typically doesn’t cover:
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Bodily injury (to you). Umbrella insurance usually won’t provide coverage if you get injured.
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Personal possessions damage. Your personal property won’t be covered by an umbrella policy.
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Business injuries. If someone is injured or property is damaged at your work, you may require professional liability insurance.
Intentional damage or injury. If you cause intentional damage or injury — or commit illegal acts —umbrella insurance typically won’t cover you.
Speak with your home insurance agent about adding umbrella liability to protect your assets.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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