You may already have auto and homeowners insurance.
But here’s the real question:
What happens if a lawsuit exceeds your current coverage limits?
That’s where umbrella insurance comes in.
🛡 What Is an Umbrella Policy?
An umbrella policy provides additional liability protection above your existing policies.
It sits on top of:
- Auto insurance
- Homeowners insurance
- Condo insurance
- Landlord policies
If your underlying liability limits are exhausted, the umbrella kicks in.
💥 Real-Life Example
Let’s say:
- You cause a serious car accident
- Medical bills and damages total $750,000
- Your auto policy only covers $300,000
Without umbrella coverage, you could be personally responsible for the remaining $450,000.
An umbrella policy can help cover that difference.
🏠 It’s Not Just About Car Accidents
Umbrella insurance can also protect you if:
- A guest is seriously injured at your home
- Your dog bites someone
- Your child causes major property damage
- You’re sued for defamation (in some cases)
- You own rental property
Lawsuits can escalate quickly.
💰 How Much Coverage Do Most People Carry?
Umbrella policies typically start at:
- $1,000,000 in coverage
- Additional increments available
The cost is often surprisingly affordable compared to the protection provided.
📈 Who Should Consider an Umbrella Policy?
You may want to consider one if you:
✔ Own a home
✔ Have teenage drivers
✔ Own rental property
✔ Have significant savings or investments
✔ Have high income
✔ Have future earning potential to protect
The more assets you have, the more protection you may need.
⚖️ Why Lawsuits Are Increasing
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In today’s environment:
- Medical costs are high
- Legal costs are high
- Jury awards are increasing
Even a single incident can exceed standard liability limits.
🧠 How Much Liability Do You Currently Have?
Most standard policies include:
- $100,000–$300,000 auto liability
- $300,000 homeowners liability
For many households, that may not be enough.
A simple rule of thumb:
Your liability coverage should reflect your total assets and future income.
🔍 What Does an Umbrella NOT Cover?
Umbrella policies generally do not cover:
- Your own injuries
- Your own property damage
- Business liability (unless endorsed)
- Professional liability
It strictly extends liability protection.
☂️ Is an Umbrella Policy Worth It?
If you have something to lose, it’s worth reviewing.
Umbrella insurance isn’t about fear.
It’s about protecting everything you’ve worked hard to build.
📅 Should You Add an Umbrella?
At Starwest Insurance, we help clients:
✔ Review current liability limits
✔ Assess asset exposure
✔ Structure proper underlying coverage
✔ Compare umbrella carrier options
✔ Ensure compliance with umbrella requirements
Many clients are surprised how affordable it is.
👉 Schedule a Liability Protection Review Today
• “How Much Umbrella Insurance Do I Need?”
• “Umbrella vs Increasing Liability Limits”
• Or a Net Worth Protection Guide for Orange County Families
Are we targeting affluent households next?