Reasons to Get an Umbrella Policy

You may think your current coverage is more than enough, but with the costs of medical expenses, extended lawsuits, and other legal fees being what they are, you may be surprised how quickly things can add up. Just as an umbrella can keep you dry even when it’s pouring rain outside, an umbrella insurance policy can protect you.

Umbrella insurance provides extra liability coverage on top of your regular policies. It’s a personal policy that kicks in when your other policies are maxed out.  Below are reasons to consider umbrella insurance:

You have teenage drivers in your household

The risk of having an accident rises significantly when a driver is young, which is why auto insurance premiums are so high when you add a teen to your policy. An umbrella policy can pay out above the liability limits on your auto insurance policy if your teenager has an accident and injures somebody else or damages their car. It’s also a good idea for drivers of all ages to add underinsured/uninsured motorist coverage up to the liability limits of their umbrella policy. This protects you from damages and injuries caused by a driver who doesn’t have insurance or has too little liability coverage to cover your bills.

You have significant savings or other assets

There’s a common saying that ‘those with the most have the most to lose.’ While that’s unequivocally true, the sad truth is that those in the most fortunate situations often have a big, red target painted on their backs. You can certainly afford the extra coverage, so don’t let the lawsuit-happy individuals out there ruin you financially.

You love to party

If you’re a social drinker and like to entertain friends and neighbors, that comes with extra risk too. If your guests leave the party and injure others while driving under the influence, you could be included in the negligence lawsuit as well. Check with your insurance agent to find out what your liability is in your state, what coverage your homeowners policy provides to social hosts, and what additional protection you might need through umbrella coverage.

You own a business

If you own a company or are on the board of directors, you are at risk if anyone sues the business for things like workplace accidents, harassment claims, or slander. While most companies have ample business insurance coverage, it’s a good idea to look into your particular coverage and limits and see if an additional umbrella policy would be good to have.

You own certain dog breeds

Even man’s best friend can have a bad day from time to time. Unfortunately, those unexpected mistakes can result in serious injuries and significant payouts. The fact that some insurance companies will deny you coverage if you own a Doberman, Rottweiler, Pit Bull, or dozens of other surprising breeds—is all the more reason to opt for an umbrella policy.

You are a landlord

Whether one of your tenants slips and falls on your icy walkway or the faulty wiring in your building leads to a fire that destroys thousands of dollars in personal property—an umbrella policy would ensure you’re fully protected.

You participate in activities that could easily injure others

Let’s face it—accidents can happen in any recreational activity. With that said, there are some sports and pastimes where the risks are much higher than others. For instance, boating and golf come with the additional risk of causing property damage or personal harm to others in your vicinity.

You own items that could lead to injury lawsuits

Backyard pools, trampolines, and other similar items are known in the insurance industry as “attractive nuisances,” meaning they may attract others in your neighborhood to want to use them—even without your permission. The risk of serious and long-term injury is so great with these items, some insurance companies will require you to install a fence to limit access or simply ban them altogether.

By investing in an umbrella policy, you will gain peace of mind knowing your current assets—as well as any future earnings—are fully protected. Be sure you have the best insurance that meets your needs. Talk to ONYX Insurance Brokers now! We’ll help you with your insurance needs. For inquiries, contact or email us now!