What is Personal Umbrella Insurance?

Personal umbrella insurance provides additional liability coverage over and above what your current auto, home or boat insurance policies provide. Also referred to as personal liability insurance, umbrella insurance kicks in when your base liability limits have been reached and covers things like personal injury lawsuits, damage to other people’s property and lawsuits involving slander, libel and defamation of character.

Here are some common circumstances that warrant an umbrella policy:

  • You have a swimming pool or a trampoline
  • You own a dog or other dangerous pets
  • You have an inexperienced driver in the house
  • You coach youth sports
  • You frequently host parties on your property

What is Not Covered Under a Personal Umbrella Policy?

Personal umbrella policies do not provide coverage for contents, the dwelling or the auto itself, nor does it cover the costs associated with injuries to you. Additionally, it does not cover damages or injuries caused by uncovered equipment, nor is it transferrable to your business.

What Might Preclude Me from Qualifying for Personal Umbrella Insurance?

Umbrella insurance companies will require you to have specific liability coverage on your auto, home or boat policies. If you carry liability limits under the expressly stated minimal amounts required, you will not be eligible for umbrella insurance unless you increase the liability limits on those policies.

Other circumstances that may impact eligibility include:

  • Excessive auto claims
  • Prior liability claims
  • A prior dog bite claim
  • An open bodily injury auto claim
  • An open personal injury homeowner claim

How Much Does Personal Umbrella Insurance Cost?

Umbrella policies can run as little as $300 per year or $25.00 per month and provide coverage starting at $1,000,000. However, every policy holder’s situation is different; premiums are based on your underlying policies and a variety of variables, such as how many vehicles or houses you own, the number of teenage drivers in your home and any boats or watercraft you own. The more risk exposure you have, the higher the premiums.

At Hanson & Ryan, we have over 140 years of experience matching the right insurance to our customers’ needs and budgets. We understand the various nuances involved in umbrella policies and we can help you find the right coverage for your unique circumstances.