What are the Benefits of Personal Umbrella Insurance? (Video)

A personal umbrella insurance policy is an important and affordable product that can save your family from a financial disaster. Once you maintain limits of $500,000 on both your home and auto insurance policies, you may be eligible to purchase an umbrella policy. An umbrella policy is an extra layer of protection sold in increments of $1,000,000. This limit only responds to a liability claim against you after the initial $500,000 coverage from your home or auto insurance policy has been exhausted.

Every person’s greatest exposure is from driving his or her own car. We often think of car accidents as just fender benders, but what happens if you hit a pedestrian? What if you cause a 4-car accident? What if you hit a motorcyclist? Each of those examples could easily bring a judgment against you greater than $1,000,000. I have even seen very large claims result from children while away at school and a bicycle accident.

All of your owned exposures should be accounted for under your umbrella, not just your home and auto. Boats, motorcycles and rental properties should be included as well.

Normal, everyday accidents can turn very serious, and you should purchase a limit high enough to cover your assets so that you will not have to liquidate in order to settle a judgment against you. Limits up to $5,000,000 are easily available for most.

The average cost of a $1,000,000 umbrella over one home and two autos is under $200 annually, when written with the same company which writes your home and auto insurance.

Contact us for an Oakland personal umbrella insurance quote.