Umbrella insurance, sometimes called personal liability insurance, offers coverage beyond the limits of your other policies. It can help cover the financial gaps and protect your savings and assets in the event you’re liable for damages.
Umbrella insurance is not required, but many choose to purchase a policy for greater peace of mind in answering some of life’s “what if” questions. There are key advantages to this type of coverage, but there may also be downsides.
To help you understand umbrella insurance more clearly, here is a breakdown of some major pros and cons:
Advantages of umbrella insurance
Umbrella insurance can help you avoid major financial loss. Some major advantages include:
- If you reach the limit on your home or auto insurance, umbrella insurance can help cover the remainder.
- Umbrella coverage includes incidents and situations that other policies might not (like being sued for libel or slander).
- Coverage limits are high, usually starting at $1 million.
- Most umbrella coverage applies anywhere in the world, keeping you protected while you travel.
- Umbrella insurance might cover expensive rental items you might not have other insurance for, e.g., boats.
Disadvantages of umbrella insurance
Umbrella insurance provides extra liability coverage and legal defense in a variety of situations. However, there are some downsides and major exceptions to consider, including:
- You cannot buy umbrella insurance unless you’ve already purchased a qualifying minimum amount of auto or home insurance first.
- Umbrella insurance does not cover the cost of your own medical bills if you’re injured.
- Damage to your own personal property is not covered.
An umbrella insurance policy can keep you and your assets safe. While you’ll hopefully never need to file a claim, the more you know about what umbrella coverage provides, the better insurance decisions you’ll be able to make.
About the Author
Linda Cappello, Broker, GRI, ABR
Linda A. Cappello, Owner/Broker of Cappello Realty Shoreline Properties. Cappello Realty is a full service boutique Real Estate firm that specializes in 06855 - East Norwalk, and services all of Norwalk and Fairfield County, CT. Linda has been in the Real Estate business for 20+ years, spending 18 of them as a Owner/Broker. Being a Broker adds a lot responsibility to her job. She is responsible for overseeing every transaction and agent in the office. This is a challenge that she looks forward to and takes very seriously. She is constantly taking continuing education classes and attending seminars to keep abreast of the ever changing market as well as the industry standards, rules and regulations.
She is a native to East Norwalk, and has an in-depth knowledge of the city that she loves, as well as the intricacies of the many unique neighborhoods and areas that Norwalk offers. Linda offers her clients a network of professionals ranging from Attorneys, Mortgage Brokers, Home Stagers and Home Inspectors to any and all pros that you may need for a successful transaction and for the convenience of her clients.
"My job doesn't end at the closing table. It goes far beyond that, keeping in touch and staying friends who refer their family and friends. A lot of my business is referral business which is the greatest accomplishment and honor of all. Earning my clients trust."
