Umbrella Insurance

What is a Personal Umbrella Policy?

The purpose of insurance is to protect you and your family against financial loss. But, what happens if your regular insurance policy isn't enough? That's when personal umbrella insurance could help cover you. 
How Does Personal Umbrella Insurance Work?
Umbrella insurance preserves your assets and your future by adding an extra layer of liability insurance, beyond your auto and homeowner's policies. 

It is designed to cover the damages of an accident you cause or an incident that happens on your property. It helps protect you from major claims and lawsuits that could jeopardize your family's financial security.  
Advantages of Umbrella Insurance 
More Financial Security
1. Umbrella insurance offers additional liability coverage, over and above your homeowners and auto insurance policies. 

This protection starts when the liability limits on your other insurance are exhausted. At that point, your umbrella insurance takes over and provides additional protection of at least $1 million, or up to the level of coverage you purchased.
More Types of Claims
Umbrella insurance covers claims that may be excluded by other liability policies including: 
  • False arrest
  • Libel
  • Slander
  • Accidents on rental property.
More Help with Legal Fees
Umbrella insurance covers legal fees and may also reimburse you if legal proceedings causes you to lose pay from work. 

When you're sued, the insurance company wants to protect its interest. It may provide a more competent legal team than you could afford by yourself.

Why Would I Need a Personal Umbrella Policy?
  • Imagine if you or a family member missed a stop sign and struck and killed a pedestrian?
  • What if your dog bites a neighbor's child or a delivery person?  
  • Or if a serious accident occurred on your rental property? 
  • Or a fire in your condo spreads to other units. 
When incidents like this occur,  your current liability limits probably wouldn't be adequate to protect your current assets or your future income. Even if you don't have any assets, your wages can be garnished.

How Much Coverage Do I Need?

There are a lot of factors that determine the amount of coverage you need. Your financial assets, income, lifestyle, and existing coverage are all relevant. However, in a liability lawsuit, a judgment can exceed your entire net worth, jeopardizing your entire financial future. At Mangrum & Hite, we look individual situation and give you solid advice on the coverage that’s right for you.