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Do You Need An Umbrella Insurance Policy?

Life is full of unexpected twists and turns, and sometimes these surprises can lead to unforeseen financial consequences. While you may already have various insurance policies in place to protect your home, car, health, and more, there's another type of insurance that you might not have considered: umbrella insurance. In this blog post, we will explore what umbrella insurance is, what it covers, and whether or not you need it.

What is Umbrella Insurance?

Umbrella insurance is a type of liability insurance that provides an extra layer of protection beyond the coverage limits of your primary insurance policies, such as homeowners, auto, or renters insurance. It's designed to help you protect your assets and future earnings in the event of a lawsuit or a major liability claim.

What Does Umbrella Insurance Cover?

  • Liability Claims: Umbrella insurance primarily covers liability claims that exceed the limits of your existing insurance policies. For example, if you're found liable for a car accident and your auto insurance has a coverage limit of $300,000, but the damages and medical bills amount to $500,000, your umbrella policy can help cover the remaining $200,000.

  • Personal Injury Claims: This includes coverage for claims related to libel, slander, defamation, or invasion of privacy. If you find yourself in a situation where someone sues you for making damaging statements, your umbrella policy can come to the rescue.

  • Property Damage: Umbrella insurance can also cover property damage that you may accidentally cause to someone else's belongings. This is particularly useful if you're involved in an incident that leads to costly property repairs or replacements.

  • Legal Costs: The policy typically covers legal expenses, including attorney fees, court costs, and settlements. This can be especially beneficial if you're faced with a lawsuit, as legal fees can add up quickly.

Do You Need Umbrella Insurance?

The need for umbrella insurance varies from person to person, and it largely depends on your individual circumstances and risk factors. Here are some factors to consider when determining if you need an umbrella insurance policy:

  • Asset Protection: If you have significant assets, such as a valuable home, investments, or a high-income job, you may be more vulnerable to large liability claims. Umbrella insurance can help protect these assets from potential lawsuits.

  • Risky Activities: Engaging in activities that carry a higher risk of accidents or liability claims, such as owning a swimming pool, having a dog, or driving frequently, may make you a more suitable candidate for umbrella coverage.

  • Future Earnings: Consider your potential future earnings. If you anticipate increasing your income substantially in the coming years, an umbrella policy can safeguard those future earnings from being used to settle a lawsuit.

  • Peace of Mind: Umbrella insurance not only provides financial protection but also peace of mind. Knowing you have an extra layer of coverage can relieve the stress and uncertainty that come with the possibility of a major liability claim.

  • Affordability: One of the most appealing aspects of umbrella insurance is its affordability. For a relatively low premium, you can secure additional coverage that could prove invaluable in a worst-case scenario.


While umbrella insurance is not a necessity for everyone, it can be a valuable addition to your insurance portfolio if you have significant assets, engage in high-risk activities, or simply want extra peace of mind. It offers an affordable way to protect your financial future and ensure that unforeseen liability claims don't jeopardize your hard-earned assets.

To determine if an umbrella insurance policy is right for you, give us a call today and consult with an insurance agent who can assess your unique situation and help you make an informed decision. Ultimately, the choice to get umbrella insurance is about protecting what matters most to you and your loved ones. At Barney Insurance, we want to help you do that!

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