The Basics of Personal Umbrella Insurance 

Homeowners and auto insurance have dollar limits. If a serious incident leads to expenses that exceed those limits, personal umbrella insurance can provide crucial coverage.

Here’s a closer look at how personal umbrella coverage works and why it’s worth considering.

What is Personal Umbrella Insurance?

A personal umbrella policy offers liability coverage beyond what your home, auto or other personal insurance policies provide. It’s designed to help cover the costs of a claim that exceeds the limits of your underlying policy.

For example, if you’re at fault in a car accident that results in serious injuries, your auto policy might cover up to $250,000 in liability. However, if the total damages are $500,000, a personal umbrella policy could help with the remaining $250,000 (subject to your limits).

Umbrella insurance often starts at $1 million in coverage and can go higher depending on your needs.

What Does it Cover?

Umbrella insurance typically covers:

• Bodily injury liability (such as medical expenses after an accident)

• Property damage liability (if you’re responsible for damaging someone else’s property)

• Legal defense costs

• Personal liability events like libel, slander or false arrest

It’s important to note that umbrella insurance only provides liability coverage, so it doesn’t apply to your injuries or property damage. It also doesn’t replace your other policies. Instead, it extends the liability coverage you already have.

Who Might Benefit from it?

Umbrella coverage can make sense for those whose net worth exceeds the limits of their liability policies. If there’s a chance you could be held responsible for significant damages or legal costs, this type of policy can offer meaningful support during unexpected situations.

Learn More

Valera Agency can help determine if umbrella insurance is appropriate for your situation. Contact us at our Macungie, PA office today to schedule a policy review and get a quote.

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.