The Importance of a Personal Umbrella Policy

Smart Insurance Tips

As a financially successful individual, safeguarding your wealth and assets is paramount. One of the most important aspects of your personal insurance is an umbrella policy. Your primary policies – such as homeowner, auto, or boat — provide the first layer of liability protection. However, if you’re sued for a major accident involving your car or home, the liability limits of those policies could be inadequate. This is where your personal umbrella policy, also known as excess liability, comes into play.

A personal umbrella policy provides a second layer of coverage that protects you from lawsuits due to bodily injury or property damage you may have caused to another party. Without this coverage, your personal assets could be at risk. 

Personal liability umbrella insurance is a critical component of a comprehensive risk management strategy. For financially successful families, it can provide peace of mind. 


Here are a few important tips:

  1. Umbrella premiums are surprisingly affordable for high limits of coverage.
  2. The more assets you acquire, the greater your risk. Coverage limits can be purchased from a minimum of $1M to $50M+.
  3. Home construction and renting your home to others are just a couple of factors that increase your liability risk.
  4. Your insurance broker can customize a policy with the right level of coverage, based on factors like personal net worth, lifestyle and risk tolerance.
  5. Legal defense costs are typically included, outside of the coverage limits purchased on your policy.
  6. Most personal umbrella policies provide worldwide coverage

For more information contact: 
Christopher F. McDonald | Amaden Gay Agencies
P.O. Box 5004 | 11 Gay Road | East Hampton, NY 11937 | P 631.324.0041 ext. 341 | F 631.324.0671 | cmcdonald@amadengay.com