A Personal Umbrella in a nutshell is an extension of your Homeowners and Personal Auto policy. You can purchase an Umbrella Policy usually in increments of $1,000,000. It protects your home and future earnings in the event you are sued, as well as pays your defense costs.
For instance, if you carry Liability Limits of $300,000 and you purchase a Personal Umbrella of $1,000,000 you would have a total Liability Limit of $1,300,000.
Suppose you are backing out of your driveway and you hit your neighbor riding her bicycle down the street. She is knocked to the ground and hits her head. The resulting injury and rehabillation plus lost wages total up to $1,100,000.
Without the Umbrella your insurance would pay the $300,000 maximum limit. You would be responsible for the remaining $800,000 out of your pocket.
With an Umbrella, your insurance would pay the entire $1,100,000.
The cost of a Personal Umbrella is very afordable, especially when you consider a scenario like the one above.
Ask your agent to give you a quote on a Personal Umbrella.