Question I’ve always had home and auto insurance — but now I’m hearing that umbrella insurance is a good idea. I’m not sure why I might need it. What does an umbrella policy do that my other policies don’t?
Matthew McCarter is a Farmers Insurance® agent in Chester Springs, Pennsylvania. He explains how a personal umbrella can help you protect your assets.
Answer The name can be confusing. It comes from how the policy works to provide coverage for your assets. Umbrella insurance — also called a personal umbrella — is additional liability coverage over and above the liability limits on your underlying home and auto policies.
Liability insurance covers your financial responsibility to others if you’re found liable for their injuries or property losses. For example, if you hit another vehicle on the road or run into someone’s fence. Or maybe a visitor to your home slips on a loose patio tile and needs medical care. Your liability coverage helps cover you in these situations.
The more assets you own, the more you have at risk in the event of a lawsuit. For many households, the liability limits on their auto and home policies might not be enough to cover everything they want to protect. That’s where umbrella insurance comes in. If your liability ever exceeds the limit on your home or auto policy, your personal umbrella can provide additional coverage.
Choosing an umbrella policy can be more affordable than increasing the liability limits on your underlying policies. Farmers offers up to $10 million in coverage — available in $1 million increments.
Find out why umbrella
Farmers is a smart
The information contained in this page is provided for general informational purposes only. The information is provided by Farmers® and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.