Does The Umbrella Only Increase Coverage When It Rains?

Does The Umbrella Only Increase Coverage When It Rains?

| May 20, 2021
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In The Insurance World

An Umbrella policy is an affordable way to protect yourself if someone sues you for more than what is covered by your basic policy. 

The Basics

A personal and/or a commercial umbrella is designed to extend additional liability protection from underlying policies with certain liabiltiy limits. 

Umbrellas usually cover more than one line of insurance coverage.  


  • Home and Automobiles (other policies may be included in underlying) 
  • Business, General Liability and Auto

An umbrella policy covers defense costs.  In addition to the threat of a costly judgement, you will also have to pay to defend yourself, even if the suit is frivolous.  (A defense attorney may charge anywhere from $100 to $800 per hour, and a personal umbrella pays defense costs in addition to the limit of coverage.)

An umbrella policy is an affordable way to obtain a lot of coverage.  Depending on your location, a Personal Umbrella averages just $250 in premium--that's just $20 per month for $1 Million in personal liability protection.

It offers worldwide territory.

There is a "deductible" called "self-insured retention limit" or SIR.  This only applies if the loss is not covered by the required underlying insurance.  If the underlying insurance covers the loss, the umbrella picks up the coverage as soon as the underlying insurance is exhausted.  "Exhausted" means the liability limits selected on home, auto, etc have been completed maxed out and there is no more coverage available under that policy.

Who Should Purchase Umbrella Coverage?

  • Those who need to protect assets
    • Sole Proprietor
    • Partners
    • Executives
    • High profile individuals
    • Those who travel abroad
    • Everyone
  • Those with good earnings potential
    • Those beginning a promising career
    • New Business Venture
    • Everyone
  • Those who wish to protect assets in excess of their underlying coverage 
    • Middle class America
    • Blue collar workers with sufficient assets
    • Everyone

Talk With An Agent

When you have questions about an umbrella insurance policy, request a virtual or in-person consultation with one of our knowledgeable team or speak with your insurance agent.  Even if you decide purchasing an umbrella policy is not what you need right now, at least find out what the underlying costs would be.  Making an educated decision with all the facts and figures is much easier than just assuming it is too expensive and out of your budget.  You may be surprised! 

 Was That Really A Question? 

 "Does The Umbrella Only Increase Coverage When It Rains?" 

Yes, it was really a question! 

While an insurance umbrella acts like an actual umbrella providing broader protection over us and our assets, the coverage limit selected remains the same, no matter the weather.  

#umbrellainsurance #personalumbrella #insurance #assets #lawsuits #protection

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