An umbrella insurance policy is one of the most misunderstood and underutilized types of coverage. Here is a straightforward explanation of what it does, who needs it, and what it costs.
What an Umbrella Policy Does
An umbrella policy provides an extra layer of liability protection above and beyond your auto, home, and other underlying policies. Think of it as a safety net that catches claims that exceed your standard policy limits.
Real-World Example
You cause a car accident that results in $500,000 in injuries. Your auto policy has $300,000 in liability coverage. Without an umbrella, you are personally responsible for the remaining $200,000. With a $1 million umbrella policy, the umbrella picks up the excess.
Who Needs Umbrella Coverage?
You should seriously consider umbrella coverage if you:
- Own a home or other real estate
- Have savings or investments to protect
- Have a teenager driving on your policy
- Own a pool, trampoline, or ATV
- Host guests frequently
- Serve on a board or volunteer organization
What Does It Cost?
A $1 million umbrella policy through Erie Insurance typically costs between $150 and $300 per year. That is roughly $15 to $25 per month for an extra million dollars of protection.
Get a Quote
Umbrella coverage is one of the best values in insurance. Call Vallie Insurance to add this protection to your current policies.