Monthly Minute – August 2021

Umbrella Insurance

Umbrella Insurance

Our focus this month is on a specific type of personal liability coverage, umbrella insurance. I’ve found that similar to our topic last month, HSAs, most people have heard of umbrella coverage, but many don’t know much about it, or if it’s something they need.

So what is umbrella insurance? It’s a type of personal liability coverage that protects you, your family, and other members of your home. This coverage provides protection for a claim above your homeowner’s or auto insurance liability limit. 

What is it For?

Imagine hosting a Christmas party and someone slipping on the ice leading up to your front door and having to be rushed to the hospital. They can’t afford to pay for their medical bills and end up suing you. 

Your dog is having a bad day and decides to attack someone walking in front of your house. They sue you. 

You cause an accident involving multiple cars. Potentially multiple lawsuits. 

Your son or daughter has a friend over and they’re playing on your trampoline. The friend falls off and the parents sue you. 

The chance of these scenarios happening is not likely, but if they or something like them were to happen, it could completely unravel your financial situation. 

Do I need it?

There’s no hard and fast rule that says everyone should own this or how much of it you should own. I tend to lean towards owning at least some coverage. Especially if you have children or significant assets. 

Do I Need It?

Take some time this month to review your personal insurance policies and see if or how umbrella insurance fits into your family’s plan. 

Did You Know?

According to the Insurance Information Institute, a $1,000,000 umbrella policy typically costs between $150-$300 per year. Add $75/year more for the next million and ~$50/year for each million after.


Fix your course on a star and then you’ll navigate any storm.

-Leonardo da Vinci

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