When Should Homeowners Get Umbrella Insurance?
The right time to get umbrella insurance is different for everyone, but key life and financial milestones such as buying a home or second property, having teenage drivers in the household, or hosting frequent events can indicate it’s time to increase your coverage.
Umbrella insurance is often purchased by those at risk for lawsuits exceeding base policy limits. High-risk situations that warrant extra protection include:
- Owning a pool, trampoline, or dog.
- Being a public figure or business owner.
- Renting out part of your property.
Many homeowners choose to add umbrella insurance when their assets exceed their liability limits. Typical umbrella coverage begins at $1 million, dependent on net worth and risk exposure. Generally, umbrella insurance is considered affordable compared to the amount of coverage you receive.
Choosing the Right Coverage
Umbrella insurance provides additional liability coverage for specific claims not covered by homeowners or auto policies, so reviewing your current policies and identifying coverage gaps is important before choosing what coverage is best for you.
Your insurance company can help you choose the right coverage by providing a consultation and walking you through policy options.