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Umbrella Insurance

Umbrella Insurance

Umbrella Insurance Policies

Campbell Insurance Agency


As a covered car owner or as a homeowner with a policy, one may not ever contemplate what can happen if the insurance coverage limit is reached and ones assets are vulnerable as a result. For example, often vehicle insurance offers only a maximum of $300,000 in liability coverage. Should a worst case scenario occur and one is at fault for an accident in which the injuries lead to, say, $600,000 in damages, it is not difficult to see a potentially devastating consequence. The alternative to being sued and being forced into selling ones hard-earned assets is turn to what is known as an "umbrella" policy to come up with the extra costs incurred as a result of such an event.

These umbrella policies fill in the gaps that homeowners or car insurance may leave exposed when existing coverage is exhausted. Umbrella coverage is compelling as it also can cover the policy holder against liability due to slander, false arrest, vandalism, and even instances of invasion of privacy.

Umbrella insurance is not limited to just the home and car coverage, it can follow one into other areas of life as well. Umbrella coverage can protect ones children at college if they were to lose a computer to dorm room theft for example. It can provide protection to a homeowner if his or her dog were to break its chain and bite the neighbor's kid who jumped the property line wall to retrieve a lost ball. These are just a few of the areas in which this umbrella coverage could be of great help.

An umbrella policy can also cover liability involved with those who are renters. The typical landlord policy only covers the rental structure, which leaves the landlord vulnerable to liability lawsuits that are outside of the normal coverage. This kind of coverage would be invaluable for those who utilize their investment properties for rentals. Umbrella coverage is essential as another protective layer for policy holders who wish to retain all of their hard-earned assets in the event of legal challenges.

Normally, if one is inclined to purchase an umbrella policy, she or he should be prepared for a minimum coverage of approximately $250k for vehicle liability and about $300k in liability protection for their homeowner's policy.

With an umbrella policy, one can rest assured that they are protected in the event of a lawsuit due to an at-fault accident causing harm to another party. Keeping your assets in the event of such a tragedy can be the difference between a life well-lived and one in which an ongoing struggle persists.