How to Tell if You Need an Umbrella Policy

Umbrella policies act as added layers of coverage when your standard policy is exceeded.

By Lisa Losito

This article was first published as part of our personal insurance educational email series. The series has been so well received that we wanted to share the information with you. If you’d like to join our personal insurance mailing list, email [email protected] to let us know!

Insurance claims exceed standard policy limits all the time.

You might have enough property coverage to make home repairs after a fire, but not enough to cover a lawsuit after a 10-year-old is severely injured at your child’s pool party. Your auto policies may replace your car if you’re in an accident, but won’t pay the other driver’s long-lasting medical bills if they need extensive care.

Umbrella insurance policies are added layers of coverage. They enhance your existing policies and may act as primary coverage in areas excluded on your home/auto policies.

Umbrella policies cover the costs of injuries sustained by others who may be hurt in accidents involving you or your property. These may include auto accidents, boating accidents, trips/falls on your property, etc. They cover court and attorney fees if you are sued. They can also extend to the other members of your household, like if your teenager is found responsible for a major car accident, or throws a party involving underage alcohol consumption when you’re not around.

An umbrella policy can even protect your future income in the event your current assets do not add up to what you’re asked to pay in a settlement. (Yes – a judge can rule on money you have not yet earned!) 

Umbrella policies do all this for a fraction of the cost many expect. In fact, umbrella policies require some of the lowest premiums on the market.

Your agent or broker can help you decide if an umbrella policy makes sense for you. Your exposure to risk, the value of your current assets and your existing policies’ limits will all be important factors to consider.

Want to learn more, or speak with an expert to see if an umbrella policy is right for you? Our team is standing by to help. Reach out to get started.


Lisa Losito is a personal lines account executive at OneGroup, She can be reached at 315-413-4460 or [email protected].

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