Why You May Need Umbrella Insurance

Black umbrella covers home, car and money
Why do I need umbrella insurance?

YOU CAUSE A multiple-car accident resulting in several injuries that racks up $1 million in hospital bills. The problem? Your auto insurance policy will cover a maximum of $300,000 per incident. You are found legally obligated to cover the remaining $700,000. Don’t have an extra $700K lying around? That’s where umbrella insurance can help. Umbrella insurance may cover the cost of personal liabilities beyond your current auto, home and/or condo insurance policies.

What’s umbrella insurance?

Why risk it? Umbrella insurance covers beyond the limits of your auto, home/condo or renters insurance policy in the coverage amount of your choosing – from $1 million to $5 million – allowing you to properly protect your assets.

Life is unpredictable. Umbrella insurance may provides additional coverage if you are involved in an automobile accident; someone suffers an injury in your home; you are named in a personal lawsuit and need to hire a lawyer to defend you, or if your reputation is damaged by libel, slander or defamation of character.

Here’s an example of how umbrella insurance works:

  • You accidentally hit a minivan carrying 5 passengers on the highway. Your auto insurance policy covers $250,000 per person and $500,000 per accident. In this case, all 5 passengers are injured and their claims total $750,000. Your auto insurance policy will pay $500,000. But, what about the remaining $250,000? If you have an umbrella policy, it will cover the additional $250,000 not covered by your auto insurance policy.

Purchase an umbrella policy as a complement to your auto insurance policy, home insurance policy or renters insurance policy.


Michael Whitney & Associates can provide you with a low cost umbrella insurance quote.

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