What Is Personal Umbrella Liability Insurance?
Personal umbrella liability insurance provides an extra layer of insurance coverage over your standard liability policies, which generally include homeowners, renters, auto and watercraft policies. It protects your personal assets by kicking in if your standard liability coverage is exhausted. For example, if you were found to be legally responsible for injuring someone or damaging his or her property, personal umbrella liability insurance protects you from having to pay any out-of-pocket expenses that go beyond the limits of your standard liability insurance coverage.
Who Needs an Umbrella Liability Policy?
At Sandy Spring Insurance Corporation, we recommend that everyone should consider carrying an umbrella policy. If you engage in a high-risk activity or hobby that increases your odds of getting sued, such as having a teenage driver, owning a swimming pool or entertaining frequently, it is wise to supplement your insurance with a personal umbrella liability policy.
How Much Coverage Do I Need?
Consider not only your total personal assets but also your potential personal risks. For example, do you operate a business in your home and have employees and clients in your home on a regular basis? Does your profession or location of your home make you an easy target for a big settlement? Determine your personal risks to evaluate the amount of additional liability coverage you need.
Coverages start at $1 million and can go as high as $10 million. When considering the value of the umbrella policy, discuss your personal needs with one of our insurance professionals.
How Much Does Coverage Cost?
Additional liability insurance is inexpensive when compared to the added coverage you gain. Depending on the policy value and your personal risk factors, such as recent auto tickets, your credit rating and more, a $1 million umbrella policy typically costs about a dollar per day. Costs go up an additional $50 to $75 for each million thereafter.
Don’t wait for a rainy day to find out you need the additional protection a personal umbrella liability policy can provide. Call Sandy Spring Insurance Corporation today at 410.897.5800 to discuss your unique needs and learn about all of our liability insurance solutions.
Wealth and Insurance products are not FDIC insured, not guaranteed, and may lose value.
Sandy Spring Insurance Corporation is a wholly owned subsidiary of Sandy Spring Bank.
This material is provided solely for educational purposes and is not intended to constitute tax, legal or accounting advice, or a recommendation for any particular transaction.