Personal Umbrella Coverage 101

February 25, 2013

Personal Umbrella Coverage is a liability policy designed to protect the the assets and income of the policyholder. This type of coverage is considered secondary to other types of liability insurance, usually property and auto insurance policies. What this means is during a large or catastrophic liability loss, once the limits of the first policy have been exhausted, the umbrella policy will take over.

Who is a good candidate for an umbrella policy? Anyone with a high income, to start. Owning a home or rental properties is also a good characteristic. Those with their own business should also consider investing in an umbrella liability policy to protect their personal assets.

Also, anyone with extra risk should also consider this type of policy. (A good example is having teenage drivers.)

How do you know if you need an umbrella policy? Central Insurance can help take a look at your assets and determine what coverage is best for your needs and budget.