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umbrella policy

Providing you with extra piece of mind, an umbrella policy extends the liability limits of your existing policies.

What is an umbrella Policy?

An umbrella policy is a seperate policy individuals can take out to extend the liability coverage of their homeowners and auto insurance policies. If a claim arises on either of the policies which exceeds the coverage limits of that policy the Umbrella policy covers the remaining monies owed up to the limit of that policy. Typically the coverage levels for Umbrella policies start at $1,000,000.

Additional Benefits

Aside from extending your liability coverage, the umbrella policy also adds additional benefits:

Should you get an umbrella policy?

Anyone can get an umbrella policy so if you would like the piece of mind of knowing that you have the extra coverage should the worst happen then you can have it. Most people who purchase these policies usually fall into one of three categories: a) They have assets to protect. As a rule of thumb, anyone with a net worth over $500,000 should have an umbrella policy. b) They have a swimming pool or dogs. c) They regularly participate in activities in which they could injure others, like surfing, boating, and skiing, all of which are popular pastimes for Huntington Beach residents. These activities produce a lot of lawsuits from accidents. Also, anyone who regularly volunteers or coaches kids’ sports teams could be targets. Anyone who is known to be well-off financially can also be a target of lawsuits.

Are umbrella policies expensive?

An umbrella policy is generally much less expensive than people imagine. Depending on the company, $1,000,000 of coverage will cost somewhere in the region of $200-$300 per year. Prices increase as you raise the coverage, but even $10,000,000 will only cost you somewhere in the region of $2,000 per year. In order to qualify for the umbrella policy though your home and auto policies must meet the minimum liability requirements of your umbrella. These requirements vary by insurer, but expect to need around $250,000 liability coverage on your auto policy and $300,000 on your homeowners policy to qualify.

Frequently Asked Questions

Does the umbrella policy cover my car and home?

An umbrella policy doesn’t cover your car and home the way an auto policy or homeowner policy does. An umbrella policy provides liability coverage only, which is the money you need to pay for damages if you’re found legally responsible for a claim made against you. This is an extra layer of protection that provides liability coverage over and above the limits of your auto and homeowner policies. It doesn’t cover tangible assets.

How do I know what size umbrella policy I need?

Your net worth is the main thing to consider, along with your current and expected future income. The greater your worth the more coverage you may want. It really depends on your personal circumstances and risk tolerance. One of our advisors can help you figure out the best policy for you.

add an umbrella policy