What is a Personal Umbrella Policy?

Umbrella Home Auto InsuranceHow protected would you say you are? You have a homeowners insurance policy and an auto insurance policy. That should be it, right? Did you know that the limits on these policies often do not cover you in the event of a lawsuit? Unfortunately, we live in a very litigious society where your assets and future wages are put in danger without adequate liability coverage. An umbrella policy works as a supplemental insurance policy.

A personal insurance umbrella policy pays above your home, auto and other liability policies. A common limit among homeowners policies is $300,000. As you can imagine, if you are found to be liable for an injury to a guest in your home, this amount would hardly scratch the surface. Certain risk factors make you more susceptible to these types of risks. Examples include teenage drivers, owning a swimming pool or entertaining guests frequently. Most standard homeowners policies are insufficient when covering claims from animal attacks or bites, liabilities arising from social media, claims outside the US, recreational vehicles (i.e. golf carts), and rented boats over 50 horsepower, just to name a few. A personal umbrella policy can also help eliminate these gaps in coverage.

To illustrate the importance of this policy, consider this: You have a large pool with a fenced-in enclosure. You go on vacation and leave your property locked. Four teenagers hop your fence. One of them attempts a dive into the pool, breaks his neck, and as a result becomes paralyzed. The judgment for the lawsuit is $1 million. Your homeowners policy has a limit of $300,000 for liability. The remaining $700,000 would be your responsibility to pay if you did not have a personal umbrella policy. If you did not have the funds to cover this, then your assets would be used to pay this judgment.

While this is a simplified example, it helps illustrate that a personal umbrella policy offers a large benefit for a small yearly premium. The policy offers peace-of-mind from knowing you are protected in the event of a claim. Please Contact Us today for a personalized quote.


Coverage Gaps Tip Sheet


6 Ways to Protect Your Home During Vacation

Protect your home and relax.

A safe home, will leave your vacation worry free.

Florida! The land of vacation destinations! Going on vacation is a great way to relax and take your mind off the daily grind. Don’t let the excitement of an upcoming trip prevent you from securing your home against burglars. Consider the following tips:

  1. Make sure all outdoor lighting works properly. Replace any batteries or bulbs if needed.
  2. Have a friend, family member or neighbor check on the house often and collect mail. Also consider having someone mow your lawn, if necessary.
  3. Place automatic timers on your lights and set them for different times in different rooms. This will give the impression that you are home and doing things in those rooms. Also consider setting a radio to a timer so that thieves are deterred by voices in the home.
  4. Do not leave your valuables such as jewelry, art work or electronics sitting out in plain view. Hide these items in inconspicuous places such as old laundry detergent boxes.
  5. Take a photo inventory of each room of the house before you leave in case there is a loss.
  6. Try not to be too specific when posting about your upcoming trip on social media sites. Exact details will give criminals plenty of information about the perfect time to break in. Resist the urge to “check in” to your vacation destination. Nothing says your not home like a check in from miles away. (This is also a good tip for anytime you are out of the house.)

As always, check to make sure your homeowners insurance coverage is up-to-date before the trip. Contact you W3 advisor if you have any questions about your homeowners insurance.