When Should You Consider Purchasing Personal Umbrella Insurance?

When it comes to protecting your financial well-being from third-party claims, standard home and auto insurance policies might not be enough. That’s where personal umbrella insurance steps in. This additional layer of coverage can financially shield you from costs that exceed your primary policies’ liability limits.

What Is Umbrella Insurance?

Personal umbrella insurance, or umbrella liability insurance, is a type of coverage available to individuals. It can protect against claims that exceed liability amounts covered by primary insurance policies. In other words, when your automobile or homeowners liability insurance isn’t enough to cover a third-party claim, a personal umbrella insurance policy kicks in.

How Does This Insurance Work?

Umbrella insurance offers additional liability coverage beyond your primary policies, such as auto or homeowners insurance. To qualify for an umbrella policy, you generally need specific amounts of underlying coverage on other policies (e.g., auto or home insurance). These underlying primary policies cover you up to their liability limits. If you have a liability claim that exceeds your underlying policy limits, the umbrella policy can kick in. For example, if your auto policy covers up to $300,000, but the claim is $500,000, the umbrella policy may help cover the remaining $200,000.

Consult your Ranch and Coast Insurance Services representative to better understand your personal umbrella insurance options and how they may work with your existing policies.

Should You Buy Umbrella Insurance?

Umbrella insurance may be valuable for the following people:

• High-net-worth individuals—Those with substantial assets should seriously consider umbrella insurance, as it offers an extra layer of financial protection beyond primary policies.
• Homeowners and auto owners—If you own a home or vehicle, umbrella insurance can safeguard your wealth in case liability claims exceed your existing coverage.
• Business owners—Business owners facing potential lawsuits can benefit from umbrella policies to protect their personal assets.
• Landlords—If you rent out property, umbrella insurance can financially shield you from liability claims by tenants or visitors.
• Parents and pet owners—Families with children or pets may face liability risks. Umbrella coverage may help pay for costs associated with those risks.

Umbrella insurance can benefit most people because accidents can occur anytime, and there is no way to predict how much they will cost. Instead of paying out of pocket if you are found responsible for an incident, umbrella insurance can help pay for medical bills and legal costs after other policy liability limits are exceeded.

Personal Umbrella Insurance in Rancho Santa Fe, CA

Contact Ranch and Coast Insurance Services today to determine if personal umbrella insurance is right for you.

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.