Accidents happen—and sometimes, they cost more than your regular insurance will cover. That’s where personal umbrella insurance comes in.
At Dimmitt Insurance, we believe in protecting not just your assets, but your future. A personal umbrella policy is one of the most affordable ways to add an extra layer of liability coverage across multiple policies. Whether you’re a homeowner, a car owner, or both, umbrella insurance can help shield you from the financial fallout of a large claim or lawsuit.
What Is Personal Umbrella Insurance?
Personal umbrella insurance is a type of liability insurance that goes above and beyond your standard policies—such as auto or homeowners insurance. It kicks in when your existing liability limits are exhausted. This means if you’re found responsible for damages that exceed the limits of your primary coverage, your umbrella policy helps cover the rest (up to your umbrella policy limit).
For example, if you’re found at fault in a car accident and the damages total $600,000—but your auto policy only covers $300,000—an umbrella policy could help cover the remaining $300,000.
Why Would Someone Need It?
You might think personal umbrella coverage is only for the ultra-wealthy. In reality, anyone with assets to protect can benefit. Here are some common scenarios where umbrella insurance can make a difference:
- You’re involved in a major auto accident.
- A guest is injured on your property.
- Your teenager causes a costly accident.
- You’re sued for libel or slander.
- Your dog bites someone.
Lawsuits can happen to anyone, and legal fees alone can quickly add up—even if you’re ultimately found not liable.
What Does It Cover?
Umbrella insurance typically covers:
- Bodily injury liability
- Property damage liability
- Legal defense costs
- Personal injury claims like libel, slander, or false arrest
It’s important to note that personal umbrella policies don’t cover your own injuries or personal property. They also don’t apply to business-related claims unless you’ve added specific endorsements.
How Much Coverage Do You Need?
At Dimmitt Insurance, we usually recommend coverage limits starting at $1 million, but umbrella policies can go much higher depending on your needs. The right amount depends on the value of your assets, your potential exposure to liability, and your comfort level with risk.
The good news? Umbrella insurance is relatively affordable. Many policies cost less than $300 a year for $1 million in coverage—often less than a dollar a day for significant peace of mind.
Is Umbrella Insurance Required?
No, umbrella insurance is not required by law. However, it is strongly recommended if you:
- Own a home or rental property
- Drive frequently
- Have a swimming pool, trampoline, or dog
- Host guests or social gatherings
- Have teenage drivers in the household
These factors increase your exposure to risk, and umbrella insurance can help protect you from the unexpected.
Protect Your Future with Dimmitt Insurance
Your standard insurance policies are a great start—but sometimes, they’re not enough. With personal umbrella insurance, you can protect yourself against life’s bigger risks.
At Dimmitt Insurance, we’re here to help you evaluate your current coverage and determine whether an umbrella policy makes sense for your situation. Let’s make sure you’re protected—no matter what comes your way.
Want to learn more? Contact our team today to discuss adding an umbrella policy to your coverage.
