Why do I need umbrella insurance coverage?

Umbrella insurance is essentially extra liability coverage that kicks in after you’ve exhausted the limits of your auto, homeowners, or other primary liability policies. Here’s why many people choose to carry it:

1. Protects Against Large Lawsuits

If you’re ever sued for causing injury, property damage, or personal harm (like libel or slander), judgments can easily exceed the limits of standard policies. Umbrella insurance covers these excess costs so you don’t have to liquidate assets, savings, or even future income.

2. Covers More Than Standard Policies

It extends beyond auto and home liability. Depending on the policy, it can also cover:

• Claims of false arrest, defamation, or invasion of privacy.

• Incidents that happen away from your home or outside your car.

• Certain situations that your underlying policies might exclude.

3. Protects Your Assets & Future Earnings

If you’re at fault in a serious accident—say, a multi-car pileup with severe injuries—legal judgments could run into millions. Without umbrella coverage, a court could allow creditors to pursue your bank accounts, property, or garnish future wages.

4. Relatively Inexpensive for the Coverage

Umbrella policies are surprisingly affordable. For a few hundred dollars a year, you can often secure $1–5 million in extra liability protection, making it one of the best insurance values.

5. Peace of Mind

It’s a safety net. Even if you’re cautious, accidents happen—and lawsuits are unpredictable. Umbrella insurance ensures one incident won’t derail your financial future.

In short: You need umbrella insurance if you want protection against catastrophic liability claims that could wipe out your assets and put your future income at risk.

If you would like to discuss or get a quote for umbrella coverage contact us today at (425)212-3505.