Why It’s Important to Review Your Personal Umbrella Limits Every Year
You carry a personal liability umbrella policy to safeguard your financial future and protect your family from unexpected costs tied to lawsuits and settlements. Claims for bodily injury, property damage, negligence, and other incidents can arise at any time, without warning.
That’s why it’s essential to stay protected year-round by reviewing your umbrella policy annually. Insurance experts recommend meeting with your agent once a year to ensure your coverage keeps up with your evolving needs.
What Is a Personal Liability Umbrella Policy?
A personal liability umbrella policy provides additional coverage beyond your existing home, auto, and other insurance policies. Think of it as a financial safety net that shields your assets—your home, car, savings, and more—when standard policies fall short.
For example, if you’re liable for a boating accident resulting in a $500,000 settlement, but your boat insurance only covers up to $300,000, your umbrella policy would cover the remaining $200,000 after your primary policy limits are exhausted.
Without adequate coverage, your personal assets—including future earnings—could be at risk. A personal umbrella policy helps mitigate that exposure.
What Does Personal Liability Umbrella Insurance Cover?
Umbrella insurance offers broad protection if you’re sued and found liable for:
- Personal injury
- Bodily injury to others
- Property damage
- Libel, slander, or defamation
- Negligence
- Wrongful eviction
- Wrongful entry
- Invasion of privacy
Whether someone is injured on your property, harmed while operating your vehicle, or you’re sued for defamation or wrongful eviction, umbrella coverage helps with legal fees and excess liability costs.
Many umbrella policies also provide worldwide coverage—so you’re protected no matter where you travel.
Note: Umbrella policies cover personal—not business—liabilities.
How Much Does Personal Liability Umbrella Insurance Cost?
Premiums for personal umbrella coverage typically range from $150 to $300 per year for a $1 million policy. Coverage levels usually span from $1 million to $10 million, depending on your needs.
Most umbrella policies do not have a deductible, but they require your underlying policies (like auto or home) to meet specific minimum liability limits. An insurance agent can help you determine the right coverage and ensure you’re compliant with all requirements.
Who Should Consider Personal Umbrella Insurance?
While not everyone needs umbrella insurance, it’s a smart investment if you:
- Own rental or vacation properties
- Have a pool, trampoline, or recreational vehicles
- Have inexperienced drivers in your household
- Hold significant savings or investments
- Frequently host guests or events
- Have a high-profile job or public visibility
- Own a boat and take passengers out regularly
If you’re unsure whether umbrella coverage is right for you, your agent can help you evaluate your risk and needs.
Why Reviewing Your Personal Umbrella Limits Matters
As life changes, so should your insurance. Reviewing your personal umbrella policy each year ensures your coverage keeps up with any new risks—like a new driver in the house, a recently purchased vehicle, or an additional property.
Let your insurance agent know about any significant changes, including new assets like:
- RVs
- Boats
- Motorcycles
- ATVs
Also, remember that your umbrella policy may only activate if your underlying policies meet required minimum liability limits. Review those numbers with your agent to avoid any coverage gaps.
When was the last time you reviewed your umbrella policy?
If it’s been a while, now’s the time to schedule a call with your agent.
Still have questions about personal liability umbrella insurance? We’re here to help. Contact a C&S Insurance agent today.