Find Out If You Need An Umbrella Policy

Q: What is an umbrella policy and why do I need one?

You may be wondering why you would need additional coverage, but consider this situation: What if someone sues you as a result of an accident involving your car or personal property, but your auto and home liability limits are exhausted?  As the terms of the suit are made clear, the courts could come after your assets to satisfy the judgment.  Your home, personal property, even financial investments are targets.  An umbrella policy would provide you with extra coverage making it less likely that your assets would be seized for any reason.

Umbrella policies make the most sense for people who have many assets and “have a lot to lose” in the event of a lawsuit.  If you’re thinking about purchasing one, consider your family’s risk profile.  Do you have a pool where someone could be injured?  Do you have a teen driver, who is statistically more prone to causing accidents?  Do you engage in any higher risk activities in which you could injure another person? 

Think about these questions and take a look at your auto and home liability limits.  If you think you might require more coverage, talk to your insurance agent to determine if adding an umbrella policy is right for you.

Do you have a question for one of our agents? If so, submit it to
tips@netquote.com. Your question could be answered in an upcoming newsletter!

About the Author:

Adam Williams is an independent agent in San Francisco, CA.

Back to Newsletter Home

Recent 'Ask an Expert' Topics:

• How Can I Keep Teenage Auto Insurance Rates Down?
• Do I need to insure my home before it's completed?
• Can you better define comprehensive and collision coverage?