By Daniel Steinzeig

What is umbrella policy insurance?
An umbrella policy is a form of personal liability insurance that can be used when you are liable for a claim more significant than what your standard auto or homeowner’s insurance will cover. You must own standard auto, homeowner’s or watercraft insurance first to own umbrella insurance. If the limit on those insurance policies has been reached, the umbrella policy will come into play.

Do I need umbrella insurance?
Umbrella insurance can cover injuries, property damage, lawsuits and personal liability situations. It ensures you are above your standard policies’ limits and can cover specific situations that are not covered by those standard policies. Having umbrella insurance can prevent you from paying out of pocket for another person’s legal or medical bills. The situations it covers can and do happen every day.

When would I need to use my umbrella insurance?
• Your dog attacks your neighbor
• You throw a party, and a guest slips and falls, breaking their hip
• You own a rental property, someone trips on the sidewalk and sues for damages

How will umbrella insurance help me?

Let’s say you cause a car accident, and the cost of injuries you caused is $700,000. Your auto insurance limits bodily injuries to $400,000. Now, who is responsible for the remaining $300,000? Your umbrella insurance policy will cover the additional costs when the standard policy is not enough. The umbrella policy is there, so you do not need to pay out of pocket.

What is not covered under umbrella insurance?
• Your injuries or damage to your personal property
• A criminal act causing damage to someone else
• Business losses
• Contracts

How much does umbrella insurance cost?
The cost of an umbrella insurance policy depends on how much standard coverage you purchase, where you live and how much of a risk insuring you brings to the insurance company. The more properties you own, the more people living in your house, the more the insurance will cost. Compared to most insurances, umbrella insurance is relatively cheap. According to the Insurance Information Institute, a $1 million umbrella policy will cost around $150 to $300 annually.

Have more questions about personal umbrella policies? Contact a local agent at TrustPoint Insurance & Real Estate today.