How an Umbrella Works

Odds are you will never be sued for a million dollars.  But, what if you were?  What if your teenager caused an auto accident leaving a passenger in the other car permanently disabled?  And then what if the injured person sued you for $1 million and won.

How much liability coverage do you have under your auto policy?  Would it be enough?  If it is not enough, where would the money come from?  The fact is, you could lose everything you own and continue to pay for years to come.

The chances of this happening to you are not very great:  that is why insurance to cover the exposure is so affordable.  A Personal Umbrella liability policy can usually be obtained for less than $150 a year (Standard premium based on one home and one auto).  That same amount will only pay for the services of a good attorney for less than an hour.

A Personal Umbrella policy sits on top of other insurance that includes liability protection, such as your auto, homeowners and boat policies.  When coverage under these primary policies is not enough, the umbrella policy is triggered, spreading protection (hence the term “umbrella”).

Only you can decide how much liability coverage is right for your family.  In making that decision, you may want to know what an umbrella should cost in your particular situation.  Call your agent and get a quote.  Then you can make an informed decision.