Why an Umbrella Policy Might Be the Most Important Insurance You Don’t Have (Yet)

When it comes to protecting your assets, most people rely on standard insurance policies—auto, homeowners, renters, or boat insurance. But what happens when a claim exceeds the limits of those policies? That’s where umbrella insurance steps in, providing an extra layer of financial protection that could be the difference between a minor inconvenience and a major financial crisis.

What Is an Umbrella Policy?

An umbrella insurance policy is a type of personal liability insurance that kicks in when your other policies have reached their limit. It covers legal fees, medical bills, and damages if you’re held liable for an accident or lawsuit that exceeds the limits of your auto or homeowners insurance.

Real-Life Example:

Imagine you’re at fault in a car accident that results in serious injuries to multiple people. Your auto insurance covers up to $300,000 in liability, but the medical bills and legal claims total $800,000. Without umbrella insurance, you’re on the hook for the remaining $500,000—putting your home, savings, and future earnings at risk. With an umbrella policy, that extra coverage helps bridge the gap and protects your financial future.

What Does Umbrella Insurance Cover?

Umbrella policies typically include:

• Bodily injury liability (e.g., car accidents, injuries on your property)

• Property damage liability (e.g., damaging another person’s property)

• Landlord liability (if you rent out property)

• Lawsuits for slander, libel, false arrest, and more

Who Needs an Umbrella Policy?

You don’t have to be a millionaire to need umbrella insurance. In fact, if you:

• Own a home or rental property

• Drive a vehicle

• Have significant savings or investments

• Host guests or parties at your home

• Own a dog or a swimming pool

• Are active on social media or write publicly

Then you could benefit from umbrella insurance. The more assets you have—or the more risk your lifestyle carries—the more important it is to have this additional protection.

How Much Does It Cost?

The good news? Umbrella policies are surprisingly affordable. For about $150 to $300 per year, you can typically get $1 million in coverage, with additional millions costing even less per million. Given the potential risks and high costs of legal claims, it’s a smart investment.

Final Thoughts

An umbrella policy isn’t just for the wealthy—it’s for anyone who wants peace of mind knowing they’re protected against life’s unexpected legal and financial storms. At KVIS & Coe Insurance, we can help you determine whether umbrella coverage is right for you and build a policy that fits your needs and budget.

Contact us today to learn more or request a personalized umbrella insurance quote.