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What is a Personal Umbrella Policy?

A personal umbrella policy provides you with an extra layer of liability insurance, beyond your standard policies, to pay for injuries and damages others suffer because of your negligence.


You are found at-fault in an accident that resulted in serious injuries to other drivers & property damage. You are sued and the final judgements totaling $1,500,000. Your auto policy has a limit of $500,000 so that leaves you $1,000,000 short. Your personal assets are now at risk (savings, investments, property, future wages). An umbrella policy with a limit of $1,000,000 would cover this gap and protect those assets.

What is covered in an Umbrella policy? This coverage applies to you and others living in your household, a spouse, children, or others in your care younger than age 21.

It extends the limits of your primary insurance policy for your autos, home, watercraft, recreational vehicles, personal injury liability such as libel, slander, defamation of character, and false arrest. Umbrella policies are available with limits of 1 Million and higher.

Benefits of a Personal Umbrella policy: For starters, if you have a lot of assets you need to make sure you have more coverage and protection.

Secondly, legal defense coverage because many people sue, and it can be increasingly high.

Also, broader coverage because personal umbrella policies can pay for losses not covered by your current polices, such as an auto in a foreign country, or a rented or charted watercraft.

Lastly, higher limits. Adding an umbrella policy is usually the most cost-effective way to increase your overall liability coverage because it blankets over all your underlying coverage, instead of increasing the limit on each policy separately. As a matter of fact, adding an umbrella may qualify you for added discounts on your home and auto policies.

To learn more about Personal Umbrella policies, contact Paroubek Insurance and get the extra protection and peace of mind you need for you and your loved ones.



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