When it rains, you grab an umbrella. The same analogy could be accurate in insurance. 

One of the best ways to protect yourself and your loved ones is through an umbrella insurance policy, because life is full of unexpected storms. You never know what accident might be around the corner, and you never really can ultimately be “ready” for such catastrophes, but you can insure yourself to be sure you are financially protected.

What is a Personal Umbrella Policy?

We’ve discussed in previous blogs what an umbrella policy can do for your business, but did you know that you can also get an individual, personal umbrella policy?

Umbrella policies, also commonly known as personal liability policies, are one way to prepare for nearly any insurance issue. Umbrella policies act as an extra cushion for the underlying liability policies you already have in place. These policies cover costs exceeding the limits of claims outside your current insurance policies’ reach.

How are Umbrella and Excess Liability Insurance Different?

An umbrella policy is similar to excess liability insurance in that they each kick in to cover additional costs once your initial insurance policy is exceeded. Both act as insurance for your initial insurance policy. 

A key difference is that an umbrella policy goes a step further, protecting multiple policies. Unlike excess liability insurance policies, Umbrella policies can also cover additional claims not protected in your original insurance policies.  

Umbrella policies go above and beyond, protecting you in cases of damages and costs exceeding your average realm of coverage. Umbrella policies can cover property damage and legal fees, among many other costs. 

Umbrellas for the “Perfect Storm”

Personal umbrella policies can help you when there is a “perfect storm” of accidents.

For example, imagine you are getting work done on your roof. While carrying supplies from their van to your home, your contractor trips and falls on that pesky step you haven’t been able to fix quite yet. The contractor sustains a serious arm injury from the fall, is subsequently out of work for 12 weeks, and sues you for lost wages. 

While your homeowners’ insurance may cover some of the contractor’s medical fees, you may still be responsible for covering wages and legal fees. An umbrella policy could help cover any remaining costs from the accident and the following legal proceedings.

Now, this sounds far-fetched and unlikely ever actually to happen. “Especially not to me,” you may think. But the truth of the matter? Life is unpredictable! We never truly know what is around the next corner, so it is essential to take any possible precautions.

Some other signs that you might need an umbrella property: 

• You own a rental property or small business
• You have teen drivers on your insurance
• You possess significant assets
• You feel for any reason you may be in a position to be sued 

Getting an Umbrella Policy in Minnesota

If you’re still unsure if you need one of these policies, contact my team. We aren’t in the business of overinsuring or underinsuring our customers, so we will give you frank advice about what is really needed. We can take a look at your specific set of circumstances. 

Umbrella policies are often comparably inexpensive for the amount of protection they offer. Let’s get you a quick quote, today!