A multicar pileup is traced back to your vehicle. An ill-timed social media comment sparks a viral defamation backlash. Your teenager has a party that ends in a bonfire, fireworks and bodily injury to several guests.

Any of these situations can land you on the hook for a major lawsuit. Innocent or not, you’re playing defense in court. Your existing insurance helps with legal fees, but the price to defend yourself can quickly exhaust a typical $300,000 home insurance policy. When your policy limits are exhausted, you may find yourself in dire straits.

You’ve bundled your home and auto policies to maximize discounts — smart. Adding an umbrella policy can be even smarter. It can help keep you protected in a dire situation.

Umbrella coverage isn’t just for the rich or risky

You might think an umbrella isn’t necessary because you’re not rich, or that $1 million is overkill. You’d be wrong.

Let’s say you lose a personal injury lawsuit. The compensation amount might be left to a jury to decide. If that jury is asked to account for pain and suffering, future lost earnings or loss of quality of life, you might be hit with a huge settlement. The court will find a way for you to pay even if you think you can’t afford it.
What you currently have in your checking account is irrelevant because you have assets: your home, your kids’ college savings, your retirement, your current income and your future income. It’s all on the line and fair game when calculating net worth in a lawsuit.

Who needs an umbrella?

Almost anyone is at risk of being sued, especially if you or your spouse:

• Own your home
• Host parties (holidays, sleepovers, sports, etc.)
• Have teen drivers
• Coach youth sports
• Lead or host youth groups
• Have a swimming pool, hot tub or trampoline
• Own toys like snowmobiles, boats, golf carts or all-terrain vehicles
• Own rental properties
• Own pets (especially dogs)
• Carpool or drive a lot
• Babysit or host homeschool pods
• Are a high-net-worth individual
• Are active on social media
• Do gig work

Benefits of an umbrella

An umbrella can be a nice buffer to your risk management playbook. An umbrella:

• Extends the coverage across your existing policies
• Is normally cheaper than raising the limits on individual policies
• Can broaden your coverage once it kicks in (less restrictive language)
• Has coverage options from $1 million to $10 million
• May offer over $10 million in coverage (when underwritten by specialty insurance companies)
• Extends coverage on defamation and other clauses named in your policies
• Helps with legal fees and judgment costs
• Allows insurance companies to negotiate a settlement

Unfortunately, lawsuits happen; they also happen to be expensive. Thankfully, plenty of asset protection is possible when you put an umbrella over your policies. Easy.

Unfurl an umbrella over your personal assets

Now that you’re aware of the potential for expanded coverage, savings and service, call us to see what’s available. You might be surprised at how inexpensive it is to double (or even triple) your upper limits.

For less than $25 a month, you can get $1 million in coverage that extends across your home and auto policies. Sometimes you can even get broader coverage than you have with the individual policies.

Note that an umbrella only covers what’s already there in your policies. If something is excluded in your home or auto policy, it will likely be excluded in the umbrella.

Contact us for a review of your risk

Call us to find out what your current home and auto policies cover. We’re happy to explain how an umbrella policy can broaden your coverage and protect what's most important to you!