An umbrella policy provides an additional layer of liability protection beyond what your homeowners and auto insurance cover. It's an affordable way to protect your assets and future earnings from major claims or lawsuits.
Coverage Types
Excess Liability
Broader Coverage
Legal Defense Costs
What Is Umbrella Insurance and How Does It Work?
Umbrella insurance is an extra layer of liability protection that sits on top of your existing homeowners, auto, and other insurance policies. When a claim exceeds the liability limits of your underlying policy, your umbrella policy kicks in to cover the remaining costs, up to the umbrella policy limit. Most umbrella policies are available in increments of one million dollars.
For example, if someone is seriously injured on your property and the medical costs total $800,000, but your homeowners liability limit is $300,000, your umbrella policy would cover the remaining $500,000. Without umbrella coverage, you would be personally responsible for that amount, potentially putting your savings, investments, and even your home at risk.
Umbrella policies also provide broader coverage than your underlying policies in some cases. They can protect you against claims like defamation, slander, libel, and invasion of privacy that may not be covered by your standard homeowners or auto insurance.
Why Central New York Families Need Umbrella Coverage
In today's litigious society, a single accident can result in a lawsuit that far exceeds your standard policy limits. If a guest slips on your icy driveway in winter, if your teenager causes a serious car accident, or if your dog bites a neighbor, the resulting medical bills and legal costs can quickly surpass the liability limits on your home or auto policy.
Central New York residents face additional risks due to seasonal activities. Hosting gatherings, maintaining properties through harsh winters, and recreational activities on area lakes all create potential liability exposure. An umbrella policy ensures that a single unfortunate event does not threaten the financial security you have worked hard to build.
Umbrella insurance also covers you and your family members anywhere in the world, not just at your home or in your car. Whether you are traveling, volunteering, or participating in everyday activities, your umbrella policy provides an important financial safety net.
Getting Started with Umbrella Insurance
To qualify for an umbrella policy, you typically need to carry certain minimum liability limits on your underlying homeowners and auto policies. Most carriers require at least $250,000 to $500,000 in liability on your homeowners policy and at least $250,000 per person and $500,000 per accident on your auto policy. Our agents will review your current coverage and help you meet these requirements.
Choosing the right amount of umbrella coverage depends on your personal financial situation and risk exposure. A good rule of thumb is to carry enough umbrella coverage to protect your total net worth, including the value of your home, savings, investments, and future earnings. Most families find that a one to two million dollar umbrella policy provides adequate protection.
Gillespie Insurance Agency makes it easy to add umbrella coverage to your existing insurance portfolio. We can often bundle your umbrella policy with your home and auto insurance for additional savings. Contact us at (315) 252-0694 to learn how affordable this essential coverage can be.
Common Umbrella Insurance Questions
Umbrella insurance provides additional liability coverage beyond the limits of your homeowners, auto, and other underlying policies. It covers claims such as bodily injury, property damage, and certain lawsuits, including some that your underlying policies may not cover, like false arrest, slander, or libel.
Umbrella insurance is one of the most affordable types of coverage relative to the protection it provides. A one-million-dollar umbrella policy typically costs between $150 and $350 per year, depending on your risk profile. Additional millions of coverage are often available for a modest incremental cost.
Anyone with assets to protect should consider umbrella insurance. If you own a home, have savings or investments, or could be at risk for a lawsuit due to your profession or lifestyle, an umbrella policy provides valuable peace of mind. It is especially important for homeowners with swimming pools, trampolines, or dogs, as well as anyone who frequently hosts guests.