5 Essential Insurance Coverages: Umbrella Insurance

5 Essential Insurance Coverages: Umbrella Insurance

Sep 11 2019

5 Essential Insurance Coverages: Umbrella Insurance

What is Umbrella Insurance?

Umbrella Insurance provides excess liability coverage beyond that which is provided by your personal home, auto, and watercraft policies. An umbrella gives you peace of mind knowing that you’re covered well beyond your underlying policy. “Would you like there to be additional coverage available once the liability limits of your home, auto (and other) policies are exhausted? If so, you should consider an umbrella.

Umbrella Insurance is written in increments of $1,000,000 and is typically subject to a small deductible. As with auto and home liability coverage, the insurer also pays attorney fees while defending the client. These fees do not reduce the amount of coverage available via the Umbrella Policy.

Imagine This Scenario

Mrs. Mane runs a stop light at an intersection and t-bones a vehicle driven by a 21-year-old medical student, leaving her paralyzed from the waist down. A jury awards the claimant $5,000,000. Assuming Mrs. Mane carries 250/500/ for her auto liability limits (a common level of coverage for umbrella policyholders) and a $5,000,000 umbrella, Mrs. Mane’s auto policy will pay the first $250,000 with umbrella covering the remaining $4,750,000.

How Much to Consider

Although $1 million may appear to be a lot of coverage for most people, the total cost of a liability claim can multiply quickly. Balancing the cost of premium with having adequate protection is an important consideration when discussing an umbrella policy.

What it Costs 

  • Connecticut: $150/year & up
  • Massachusetts: $159/year & up

Request an Umbrella Insurance Quote

Do you have the right insurance coverage to get you through all of life’s ups and downs? At Bearingstar Insurance, we know that you’ve worked hard for all that you’ve accomplished, and are here to make sure it’s all protected. With offices throughout Massachusetts and Connecticut, it’s easy to find a local agent to help with your insurance needs!

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