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Ieuter Insurance Group Blog

All You Ever Wanted to Know About Insurance

Umbrella Insurance

More and more Americans are realizing the importance of purchasing a Personal Umbrella policy to protect their assets and future earning capabilities. 

We live in a highly litigious society.  Not only are clients potentially sued by third parties who allege injury or damages, the third parties are seeking large settlements.  Some states are even known for their frequent verdicts in favor of the plaintiff and their large jury awards.

Even if the client is found innocent of the allegations, the cost to defend the lawsuit can be costly.  One source cites the average costs of civil litigation for an automobile loss as just under $40,000, with a premise’s liability loss close to $50,000.

Clients continue to have more exposure to loss due to personal interests such as leisure activities (recreational vehicles, watercraft, extreme sports and travel), frequent entertainment in their homes, and social media activity (which increases the potential for slander and defamation of character allegations.)

A Personal Umbrella will provide excess coverage to your underlying Homeowners and Auto policies.  If a third-party claim were to occur on your Homeowner’s liability policy, the homeowner’s limit of insurance would be the first to respond.  If the claim is higher than your limits, the Umbrella would then cover the difference up to its limit.  If you didn’t have the Umbrella policy, you would be responsible for anything over and beyond the homeowner’s limits of insurance. 

If you don’t already have a Personal Umbrella policy, please talk to your agent about its benefits.  Personal Umbrellas have limits in increments of $1,000,000.  The premium is relatively inexpensive for the coverages it provides, and they may also provide additional discounts to your other policies.


Source:  CIC: Personal Lines / The National Alliance for Insurance Education and Research