One of the most misunderstood types of insurance out there is the Personal Umbrella policy, aka Excess Liability policy, aka “what the heck is this and why do I need it and does it come with an actual umbrella?” policy. 

Basically, an umbrella policy is a liability policy that gives you excess coverage over and above the limits you have on your insurance policies for auto, home, watercrafts, etc… Most of those policies will carry limits of $300,000 to $500,000 in liability protection.  So, if you are in a car accident and seriously injure another person, your auto policy might only cover up to $250,000 (check your policy) for medical bills, lost wages.  Those will add up quickly; what happens if the injured person is still hurting and your policy has paid it’s limits?  Yep, the rest is going to come out of your pocket!  An umbrella policy will give you excess coverage with anywhere from $1 million to $5 or even $10 million for instances like these.

But an umbrella doesn’t just help you if you injure someone in an accident, or if someone gets hurt at your home.  An umbrella can protect you in a lawsuit as well.  We live in a very litigious (spelled that right first try!) society, and now it’s easier than ever to get caught up in a lawsuit.  With the new media sites (Facebook, Twitter, Myspace) you or your kids can post their every thought for all the world to see.  If your middle school son has a bad day in Science class, goes home and posts something negative about Mr. Science Teacher on facebook saying that Mr. Science Teacher wears makeup, and the next day Mr. Science Teacher is teased in class all day and the kids rebel against his makeup wearing ways thus sending him on a early forced retirement.  Guess What?  Mr. Science teacher is going to sue YOU for lost wages and hurt feelings (and possibly more makeup) because YOUR son made a seemingly innocent facebook post at 7:03pm. 

That’s kind of a silly scenario above, but believe me, it can happen.  What do you do when that teacher or other parent sues you for more than your liability? An umbrella policy will pick up then, and it will help pay for legal fees and getting you defended. 

How much do you think it would cost to get this coverage?  One of the best things about umbrella policies, aside from the extra protection it offers, is that they are extremely affordable.  You could secure an umbrella policy for as little as $150-$250 per year.  They are, as Insurance for Dummies author Jack Hungleman writes “the best buy in the insurance industry by far.”

So, come on over to Burnette Insurance, check out our personal insurance section, the personal umbrella portion specifically to learn more about this great policy.  We would be very happy to talk about this with you!

Oh, and although a personal umbrella policy doesn’t really come with an actual umbrella, we just might be able to work something out if you really want one!