We posted an article recently on Teen Drivers that started quite a few conversations about Umbrella Insurance. At the risk of sounding like a broken record, we can’t stress the importance of an Umbrella Policy enough.

An Umbrella Policy provides an additional layer of insurance, typically $1 million or $2 million, above your auto and home insurance liability coverage. For the amount of coverage that it provides, Umbrella Insurance usually will cost only a few hundred dollars a year!

Losing your retirement funds, investments, savings and even perhaps your future earnings is not something most people want to chance. Because of the high cost of accidents (healthcare in particular) and rising lawsuit judgements, Umbrella Insurance should be an essential part of your insurance portfolio. 

As an example, you have an Auto Insurance Policy with liability coverage of $250,000 per person/$500,000 per accident. You (or another driver in your family) hits another vehicle where there is a single passenger who is injured. There is a judgement against you for $1M.

Your Auto Policy pays out $250,000 (the liability coverage). Your Umbrella Policy kicks in after the auto liability coverage has been exhausted. The Umbrella Policy would pay out the remaining $750,000. Without that, you would have been responsible for the remaining $750,000 from your assets.

Umbrella protection offers more than just coverage for auto accidents however. Summer is here and with it comes a season of gatherings and pool parties, road trips in the car or RV, time on the water and other outdoor sports and activities. With Umbrella Insurance protecting you, you are provided additional coverage for a variety of inherent risks.

  • Home; Accidents, Pools, Entertaining (more about Social Host Laws)
  • Auto; Accidents, Carpooling, etc…
  • Pets or Children
  • Boats or RV’s
  • Sports, Non-Profit or Vacation Activities
  • Social Media Activities

An Umbrella Policy is relatively inexpensive… costing around $300 annually for a $1 million policy. Reach out to us if you’d like to learn more … You can even use the handy form below to send a quick inquiry!

Have questions about your home, auto or umbrella insurance? Contact us for help assessing your policies and finding the gaps covered in this post.


Send them our way and we will do our best to help!

Mike Redfield

Mike Redfield

Vice President | PRIVATE RISK

Mike Redfield is Vice President – Private Risk Advisor with RogersGray. From his previous professional experience he has worked with clients to provide insurance solutions for those planning for, and in retirement.

Insurance is confusing to many, Mike specializes in making it as painless as possible while putting together plans for his clients and presenting in an understandable way. Mike grew up in Yarmouth and now resides in Plymouth with his wife, children and their dog Mokie. You can connect with Mike on LinkedIn or by email.