Personal Umbrella Insurance: How It Works With Auto, Home and Farm Policies 

Understanding how to manage your assets is important for Indiana families and individuals. At SIA, LLC, we often receive questions about personal umbrella insurance, including what it is, how it works and why it could be a valuable addition to your current coverage. Let’s explore how umbrella insurance can add extra liability coverage to your auto, homeowners and farm policies.

What Is Personal Umbrella Insurance?

Personal umbrella insurance is a type of policy that offers additional liability coverage beyond the limits of your standard policies. If a major claim or lawsuit occurs, your home, auto and farm insurance policies can pay up to their limits, but may be insufficient. Umbrella insurance can cover outstanding costs, up to the amount specified in your policy. This extra coverage can help preserve your savings, property and future earnings.

How Does Umbrella Insurance Layer Over Other Policies?

Here’s how umbrella insurance may work with common types of policies:

• Auto insurance: If you are at fault in a serious accident and other parties’ property damage or injuries exceed your auto policy’s liability limits, your umbrella policy may help cover the additional costs.
• Homeowners insurance: If someone is injured on your property or in an incident elsewhere for which you’re at fault, this policy can provide additional funds if the claim exceeds your policy’s personal liability coverage.
• Farm insurance: Umbrella coverage may help with incidents that surpass other policies’ limits, such as if a visitor is injured by livestock. Carefully scrutinize your policy regarding these potential situations, as farms are often considered businesses and may require more robust coverage than that available through standard personal umbrella policies.

Who Should Get This Policy?

Umbrella insurance may be beneficial for individuals who own property, have substantial savings, host social gatherings, own recreational vehicles or otherwise must account for significant liability risks.

Get Covered Today

Contact SIA, LLC to discuss your options and find the right coverage for your needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.