Most people assume their auto and homeowners insurance will fully protect them if something goes wrong. The problem is that every insurance policy has liability limits.

If you are responsible for a serious accident and the damages exceed those limits, you could be personally responsible for the remaining amount.

That is where umbrella insurance comes in.

What Does Umbrella Insurance Do?

Umbrella insurance provides additional personal liability coverage above the limits of your qualifying auto, homeowners, renters, or other underlying insurance policies.

For example, imagine you cause a serious auto accident and the resulting injuries and damages total $750,000. If your auto policy only provides $250,000 in liability coverage, you could be responsible for the remaining $500,000.

A properly structured umbrella policy may help cover that additional amount, subject to the policy's terms, limits, and exclusions.

What Types of Situations Can an Umbrella Policy Cover?

Umbrella insurance may provide additional protection for situations such as:

• A serious auto accident involving major injuries
• Someone being badly injured on your property
• A dog bite or other animal-related injury
• Certain personal injury claims, depending on the policy
• Legal defense costs for covered liability claims

Coverage varies by company, so it is important to review the specific policy rather than assuming every umbrella policy works the same way.

You Do Not Have to Be Wealthy to Need Umbrella Insurance

One of the biggest misconceptions is that umbrella insurance is only for millionaires.

In reality, you may have more to protect than you realize. Your home equity, savings, retirement accounts, future income, and other assets could all become important after a major liability claim.

Umbrella insurance may be worth considering if you:

• Own a home
• Have savings or retirement assets
• Have a teenage or inexperienced driver
• Own a rental property
• Have a pool, trampoline, dog, or frequent guests
• Want additional protection for your future income

Umbrella Insurance Starts With Strong Auto and Home Coverage

An umbrella policy does not replace your auto or homeowners insurance. It sits above those policies and generally requires you to maintain certain minimum liability limits.

That makes it important to review your existing coverage before adding an umbrella policy.

If you are not sure whether your current limits would adequately protect you after a serious claim, read our guide: Are You Actually Covered? A Quick Look at Your Insurance .

Is Umbrella Insurance Expensive?

Many people are surprised by how affordable umbrella insurance can be compared with the amount of additional protection it provides.

The exact premium depends on factors such as the number of homes, vehicles, drivers, rental properties, recreational vehicles, and other risks in your household.

Insurance costs have been increasing throughout Michigan, but reducing coverage is not always the safest way to lower a premium. You can learn more about what is driving those increases in: Why Insurance Rates Are Going Up in Michigan .

Who Should Consider Umbrella Insurance?

Is Umbrella Insurance Right for You?

There is no single answer that applies to every household. The right decision depends on your assets, income, vehicles, property, drivers, and overall liability exposure.

At Clear View Insurance, we can review your current policies, explain your available options in plain English, and help you determine whether umbrella insurance makes sense for your family.

Get an Umbrella Insurance Quote

Protect what you have worked hard to build with an additional layer of liability coverage.

Clear View Insurance
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