Umbrella insurance is a protection option that provides coverage beyond the limits of your homeowners or auto insurance policy. For example, in the event of a costly legal judgment against you, your umbrella policy would cover the excess costs once your home and auto policies have been reached.
What does an umbrella policy cover?
Umbrella insurance covers defense costs, judgments and court costs in the event you’re sued, and protects against liability related to non-bodily and bodily injuries. An umbrella policy typically covers the following:
- Personal injury
- Bodily injury to others
- Property damage
- Invasion of privacy
- Defense costs
- Legal settlements
- Wrongful eviction
- Wrongful entry
Why do I need an umbrella policy?
Most of us participate in activities every day that put us at risk. Simply owning a car or an automobile increases your risk of being sued. Many Americans buy no more than $300,000 in homeowners liability and $500,000 in auto liability insurance. A personal umbrella policy can provide you with $1 million in additional liability coverage, with limits up to $10 million available. Read 15 everyday activities that suggest you need an umbrella policy to learn more.
How does umbrella insurance work?
In the event you face a lawsuit, your umbrella policy will kick in when the liability limits of your home and auto policies run out.
Take this scenario, for example. You host a summer barbecue pool party, attended by family and friends. One of your friends brings a guest, and that guest slips and falls on your pool’s deck. She breaks her arm and gets a concussion, and decides to sue you for her medical bills. In court, the jury awards her a judgment of $1 million. If your homeowners liability policy limit is $300,000, you still owe her $700,000.
After you pay your homeowner’s insurance deductible, your policy pays the $300,000 limit. Your umbrella coverage would then pay the remaining $700,000 of the judgment, plus any legal expenses you incurred. With umbrella protection, all you pay out-of-pocket of this $1 million judgment is your insurance deductible.
How much does umbrella insurance cost?
The cost of a personal umbrella policy starts at about $20 a month $1 million of protection. With The Hanover’s already competitive home and auto products, adding an umbrella policy is an affordable, winning combination.
How much umbrella insurance do I need?
Personal umbrella insurance policies range from $1 million to $10 million. Our umbrella calculator makes it easy for you to see what could be at risk, by showing the difference between your total assets and your policy’s current liability limits. While state laws and restrictions may vary, it is a great way to see the potential impact an accident could have on your finances and determine how much umbrella coverage you may need.
How do I get an umbrella insurance quote?
For an umbrella insurance quote, contact your local independent insurance agent.
Find an agent near you.
Does my business need commercial umbrella insurance?
Every business should consider supplementing its standard insurance coverage with an umbrella policy. Today, any business can be sued, and juries often award large settlements. Your policy limit on your general liability and commercial auto policies might be lower than the judgment award, leaving your business to pay the remaining settlement amount out of pocket. That could put you out of business. Commercial umbrella coverage can fill the gap and protect your company from financial disaster with flexible limits up to $25 million, at affordable rates. Your independent insurance agent will work with you to customize your commercial umbrella policy quote as part of a total business insurance solution to meet your specific commercial insurance needs and fit your budget. Read five reasons why your business may need umbrella insurance to learn more.
Consult an independent insurance agent to customize a commercial umbrella policy for total business protection.
Is umbrella insurance worth it?
Umbrella insurance is one of the most cost-efficient ways to protect your family and assets. Take a look at these potential risks to see common scenarios in which umbrella insurance will come in handy.
To customize an umbrella policy that’s right for you, talk to your local independent insurance agent or visit hanover.com for more information and a listing of agents in your area.
LC OCT 2018-508