The Value of a Personal Umbrella Policy

At Doherty, we believe that part of a comprehensive insurance program includes insurance for all of those unexpected incidents that everyone experiences in their life. For this reason, we always recommend that our clients invest in an umbrella liability policy.

An umbrella liability  policy provides extra liability coverage that goes beyond the limits of your current insurance policies (homeowners, auto, or watercraft). Having umbrella insurance means you have an additional layer of security in the event that you’re sued for damages to other people's property or injuries caused to others in an accident. Additionally, umbrella insurance will also protect you against libel, vandalism, slander, and invasion of privacy.

More specific examples include:

• An automobile accident where others are seriously injured because you caused the accident
• A serious accident, injury, or drowning that happens at your home
• Damage caused by you or a family member to property you rent for vacation
• A boating accident where you cause damage to a dock, or worse, someone in the water
• Damage your son or daughter might cause in a dorm away at school
• Any bodily injury or property damage that YOU cause and are responsible for

You’re a candidate for an umbrella insurance policy if you possess considerable assets or potentially hazardous things, or if you engage in activities that could increase your risk of being sued. Remember, if you are sued for injury or damage that you cause, and there is a judgment against you, the person suing you has 20 YEARS to come after that money.  AND most judgments can be renewed after 20 years!

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How much Umbrella Coverage do I need?

At Doherty, we recommend buying enough umbrella insurance to cover your assets, which includes your home equity, personal savings, and retirement accounts. In addition to your own finances, we recommend that you also consider incidents that could increase your odds of being liable for someone’s injuries at some point like having a pool on the property, owning a dog, or having a teenage driver in your household.

Umbrella insurance limits usually start at $1 million, which generally isn’t enough anymore. Given that a basic $1 million umbrella policy is relatively inexpensive (it typically costs between $150-300 a year), we recommend you purchase as much as you can afford. When deciding how much umbrella insurance you need, keep in mind that if you don’t have enough umbrella insurance, your assets could be seized to cover damages that exceed your liability insurance limits.

Umbrella insurance limits can go as high as $10 million and beyond, with each additional $1 million in coverage adding ~$80 - $150 to the price. (Depending upon how many homes and autos you own!)

To learn more about a Personal Umbrella Liability policy, contact our team at Doherty by calling 978-475-0260 or visiting our website: dohertyinsurance.com/umbrella-insurance