What is umbrella insurance?

Umbrella insurance will extend your liability protection further than a standard car insurance policy and will protect you after an accident when your primary insurance limits are reached. Umbrella car insurance protects against invasion of privacy, slander, and false arrest claims that can be brought on by your primary policy. Enter your ZIP code below to find and compare umbrella auto insurance options from top-rated companies in your area.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Nov 17, 2020

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As many people struggle to find affordable car insurance coverage it’s more important than ever to get the maximum value for the price you pay. So what’s the secret? How do you find a great insurance policy while paying the minimum?

The kind of life you lead plays a huge role in the premium you will pay for your life insurance, so to find the best one for your budget it’s important to consider many factors. How much do you want to spend on coverage and even more importantly, how much coverage do you want? Liability coverage is the minimum amount of coverage available to purchase for your home or automobile, but is it enough to make your feel comfortable? If you want an increased amount of protection its worth considering purchasing umbrella insurance.

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Understanding the Basics of Umbrella Insurance

As you shop for a new insurance policy, you will at one point or another have questions to pop up. What does this or that insurance policy cover? How is it limiting for you needs? Does it offer any special discounts for a low risk candidate like you? Every standard insurance policy will offer protection on a basic level but an umbrella policy will extend your liability protection further. Called an umbrella policy because it “drops down” to fill out the gaps of your current policy and fill in where you need additional coverage for your home or life insurance plan, an umbrella policy can be a life saver for many people who encounter a variety of situations. Usually an umbrella policy is sold in increments of one million dollars, and can be spread out over your home and automobile insurance policies. Or, if you have a policy for your boat, car and home an umbrella policy will cover every piece of property under one policy.

What Does Umbrella Insurance Cover?

Many people decide to take a chance on the risks and just invest in the minimum amount of coverage available. While this may save people money, in the long run it may not equal out. One of the main benefits of umbrella insurance coverage is providing policyholders with piece of mind that their home, boat or car is being protected to the maximum. Umbrella insurance not only provides protection beyond the basic liability insurance but protects against invasion of privacy, slander and false arrest claims that can be brought on by your primary policy. Should you run into the unfortunate situation of someone suing you for damage of property, a umbrella insurance policy is a great blanket of protection against false claims such as libel and slandering which in this day in age are quite common. Ask yourself when questioning whether an umbrella policy is right for you or not: how important are your assets in the event that you may run the risk of losing them?  In a nutshell, an umbrella policy is a great way to protect yourself to the fullest degree so that whatever situation you run into, you can be protected and cared for by the law.

Is an Umbrella Insurance Policy Right For Me?

When it comes to determining whether or not an umbrella insurance policy is right for you, only one person can accurately answer that, and that’s you. Would you feel comfortable purchasing just the bare minimum amount of coverage or do you need more piece of mind than that? Take the time to think back to your years of hard work. You saved and saved and put your hard earnings into a boat or car or home that you have always wanted. What if one day someone destroyed your piece of property that you worked so hard for or claimed that their property was destroyed because of you? Without umbrella insurance, you could lose far more than the money it takes to go to court. Instead, you could lose your own property and valuable assets you worked so hard for. After the defining limits of your insurance have been reached, what is protecting you now? From your small business to home, it’s important to maximize your protection for you, your property you worked so hard for and your family. Like an umbrella that covers you during a rain downpour, an umbrella policy does the same thing by protecting you after an accident and when you primary insurance limits have been reached. Only you can decide what’s right for you and know the right amount of peace of mind that you need for your business, your boat, your home and your life.

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