Understanding Umbrella Insurance

An umbrella insurance policy is a secondary coverage that protects more than one property or asset with an extra layer of liability protection. It kicks in when your underlying or primary policy doesn’t provide sufficient liability limits.

Home Owners Insurance - IASTLThe umbrella policy provides an additional layer of coverage that can be used with any of your other policies or even a policy from another insurance company, including your boat, motorcycle, all-terrain vehicle and snow machine.

For example, if your liability limits are exhausted on your auto insurance, then your liability umbrella would take over and provide with additional protection of at least one million or up to the level of coverage you purchased. Umbrella liability can be purchased in larger amounts, if desired.

Boat Insurance IASTLUmbrella Insurance Policy

When do you need a liability umbrella insurance policy?

You would need a liability umbrella to be covered under the following scenarios:

  • Your dog bites a neighbor’s child and the injury requires surgery.
  • There is an accident on your rental property.
  • A fire in your condo spreads to other units,or just triggers the building’s sprinklers.
  • You’re in a serious auto accident with significant injuries.
  • You’re the third car in a four-car pileup, and the fourth vehicle is a police cruiser. (This actually happened to one of our clients.)

How much coverage do you need?

This is determined by many factors. Your financial status, lifestyle and your existing coverage are all relevant. Talk to your independent agent for advice  on the amount of coverage that is right for you.

Can you get just an umbrella policy?

Under most circumstances the umbrella policy will require that you also carry your auto policy with the same company. Certain underlying liability limits will be required. Individual umbrella policies can be purchased through excess lines agencies.

If you have any questions or want to add an umbrella policy,
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