5 reasons to get a personal umbrella policy

5 Reasons to Get a Personal Umbrella Insurance Policy


In the ever-evolving landscape of life’s uncertainties, safeguarding your assets and future earnings is crucial. Yet, amidst the array of insurance policies available, many people overlook umbrella insurance .

An umbrella insurance policy provides a robust canopy of protection, adding an extra layer over your primary insurance coverages. But why should you consider adding this policy? Well, you need an umbrella when it rains. You also need a personal umbrella insurance policy when it rains a lawsuit your way.

Dive in as we unravel the top five reasons why an umbrella insurance policy is not just good to have, but it’s a must-have for anyone seeking comprehensive protection in today’s unpredictable world.

Person holding umbrella over little wooden figure to denote personal umbrella insurance

What Is Umbrella Insurance?

Umbrella insurance, also known as a personal umbrella policy (PUP), provides liability coverage in addition to your standard insurance policies like homeowners, auto, or boat insurance.

It’s designed to protect you from major claims and lawsuits that may be filed against you, ensuring that your assets and most importantly your future earnings are shielded from unexpected and significant financial burdens.

Now, you already have liability insurance in case some slips and falls in your home, so why do you need an umbrella policy?

Well, an umbrella policy is an extra layer of protection in case you have extraordinary risks that normal liability policies won’t cover or you have particular assets that require extra protection. It can also cover excess amounts in case claims against you are not fully covered by your liability policy.

Lawyers discussing a case during an arbitration.

What Does Umbrella Insurance Cover?

Umbrella insurance provides enhanced liability protection beyond the limits of your other policies. The exact coverage amounts will vary based on your personal policy and needs, but here are some cases in which your umbrella policy would take effect.

As previously stated, it will cover damages where the costs exceed your liability limits. It can also cover personal injury to other people or damages to another person’s property when you’re found liable.

One of the most important costs it can cover are legal costs. This is a significant benefit given that legal costs can quickly add up.

There are also certain events that aren’t covered by general liability such as slander, libel, and invasion of privacy that can be covered by an umbrella policy.

Some notable exclusions to umbrella insurance are your own bodily injuries, damage to your own property, criminal acts, and business or professional activities.

Another great thing about personal umbrella insurance is it is typically a lower cost policy because you have to exhaust your other policies before it even kicks in.

Kids playing in a swimming pool

5 Reasons You Need a Personal Umbrella Policy

There are actually a lot of reasons someone would need a personal umbrella policy.

Celebrities and public figures are very susceptible to lawsuits so it’s recommended they have the extra coverage. People who host a lot of parties at their home carry a higher risk of being held liable for an accident. And if you have significantly valuable assets, you should also consider purchasing umbrella insurance to protect those assets in case you’re sued.

But there are plenty of everyday reasons someone would need personal umbrella insurance as well.

Here are five reasons to get an umbrella policy that apply to a lot more people than you think.

1. You have a teenage driver. Teenage drivers are inexperienced and will likely have an incident before they are 21. If your teenager injures someone, your auto policy may not have enough coverage, but an umbrella can help to protect you. Just like uninsured motorist coverage, umbrella insurance is very useful to your auto coverage.

2. You have a swimming pool. Swimming pools are not always covered by basic homeowners policies because of the high risk of injury associated with them. Neck injuries, concussions, and drownings are all possible and make you very susceptible to lawsuits.

The same is true if you have a trampoline, so be sure you have this extra coverage. And when it comes to certain dog breeds, talk to your insurance agent about your pet and ask the best way to make sure you’re covered.

3. You serve on a non-profit board. If you make what is viewed as a bad decision as part of the board, you could be sued for the outcome of the decision. You could also face claims of harassment, libel, or slander, but an umbrella policy can help cover your legal costs in these matters. Non-profit boards are risky, and they require protection.

4. Do you coach a youth sports team?  Many leagues have liability insurance, but is it enough? Is it even enforced? If one of your players is injured during a game or practice and their parent determines it was because of your negligence, you will be facing a lawsuit.

5. You have a rental property of any sort. A landlord who owns multiple properties would have an umbrella policy to protect their business just like an apartment complex or property management company does. But a landlord who owns just one property they rent out should have umbrella coverage too. Even if it’s not your primary business, you still need to make sure you’re protected in case one of your guests is injured while staying on your property.

How Much Umbrella Insurance Do I Need?

Like all insurance policies, the amount each person needs depends on their unique situation. For examples, someone who owns their own business and is more susceptible to lawsuits might need more coverage than the average person.

Someone who owns a large of valuables like jewelry or artwork as well as multiple real estate properties and investments also needs a larger policy to protect their assets in case of a lawsuit.

When it comes to getting a personal umbrella policy, working with an independent insurance agency like Darr Schackow is your best bet because our agents can help evaluate your assets, determine the amount of risk in your daily life, and review your existing coverages to ultimately determine what amount of coverage you need.

Call Darr Schackow to Discuss Your Insurance Needs

With the right insurance, you can be prepared for any eventuality. Getting the right insurance requires having the right insurance agent on your side as well.

Darr Schackow has the agents you need. We pride ourselves on putting out customers first and finding them the right coverage at the right cost.

Let us help you prepare for a rainy day. Contact us for a free quote.



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