If you own a home, drive a car, have savings, or simply want to protect everything you’ve worked hard to build, an umbrella insurance policy may be one of the smartest investments you can make.
Many people assume their home and auto insurance provide enough liability protection—but today’s lawsuits can easily exceed those policy limits.
At Starwest Insurance Services, we’ve been helping California families and business owners protect their assets since 1995. Here’s why an umbrella policy deserves serious consideration.
What Is an Umbrella Insurance Policy?
An umbrella policy provides additional liability protection above the limits of your underlying insurance policies, such as:
- Auto Insurance
- Homeowners Insurance
- Condo Insurance
- Landlord Insurance
- Boat Insurance
Think of it as an extra layer of financial protection.
Example
Your auto policy provides:
- Bodily Injury Liability: $250,000/$500,000
You cause a serious accident resulting in:
- Medical bills
- Lost wages
- Pain and suffering
The court awards:
$1,250,000
Your auto policy pays:
$500,000
Your umbrella policy pays:
$750,000
Without an umbrella policy, you could be personally responsible for the remaining $750,000.
What Does Umbrella Insurance Cover?
An umbrella policy may help cover:
- Serious auto accidents
- Major homeowner liability claims
- Dog bite lawsuits
- Injuries occurring on your property
- Rental property liability
- Defamation (libel and slander)
- False arrest (when covered)
- Legal defense costs
- Judgments and settlements
Depending on the carrier, legal defense costs may be covered in addition to the policy limit.
Real-Life Examples
Auto Accident
A distracted driver causes a multi-car accident involving several injuries.
Damages exceed the auto policy limits by hundreds of thousands of dollars.
An umbrella policy protects the driver’s savings, investments, and future income.
Swimming Pool Accident
A guest dives into a backyard pool and suffers permanent injuries.
Medical expenses exceed $1 million.
Without an umbrella policy, the homeowner’s assets may be at risk.
Dog Bite
Even friendly dogs can bite unexpectedly.
California has strict liability laws regarding dog bites.
A severe injury can easily result in a six-figure or seven-figure lawsuit.
Teen Drivers
Teen drivers statistically have a higher chance of being involved in accidents.
An umbrella policy can provide valuable additional protection for families with young drivers.
Who Should Consider an Umbrella Policy?
You should strongly consider an umbrella policy if you:
- Own a home
- Own rental property
- Have teenage drivers
- Have a swimming pool
- Own a dog
- Own a boat
- Have significant savings or investments
- Own a business
- Earn a high income
- Want to protect future wages from lawsuits
How Much Umbrella Coverage Do I Need?
Common limits include:
- $1 Million
- $2 Million
- $3 Million
- $5 Million
- $10 Million
Many financial advisors recommend carrying umbrella coverage equal to or greater than your net worth.
Is Umbrella Insurance Expensive?
Most people are surprised.
A $1 million umbrella policy often costs between $150 and $400 per year, depending on factors such as:
- Number of vehicles
- Number of drivers
- Driving history
- Homes owned
- Rental properties
- Recreational vehicles
- Prior claims
Considering the amount of protection provided, it’s one of the best values in insurance.
What Liability Limits Are Required?
Most umbrella carriers require minimum underlying liability limits before they will issue an umbrella policy.
Typical requirements include:
Auto Insurance
- $250,000 / $500,000 Bodily Injury
- $100,000 Property Damage
Homeowners
- $300,000 or $500,000 Personal Liability
Requirements vary by insurance company.
Don’t Forget Uninsured/Underinsured Motorist Coverage
Some umbrella policies allow you to add Excess Uninsured/Underinsured Motorist (UM/UIM) coverage.
This can provide additional protection if you’re seriously injured by a driver who has little or no insurance.
Considering the number of uninsured drivers in California, this coverage is often well worth the additional premium.
California Lawsuits Are More Expensive Than Ever
Medical costs continue to rise.
Vehicle repair costs have increased dramatically.
Jury awards continue to climb.
Even responsible people can find themselves facing lawsuits after a serious accident.
An umbrella policy helps protect:
- Your savings
- Retirement accounts (subject to applicable laws)
- Investments
- Future earnings
- Your family’s financial future
Why Choose Starwest Insurance Services?
Since 1995, Starwest Insurance Services has helped California families and business owners protect what matters most.
We compare multiple highly rated insurance companies to find the best combination of:
- Competitive pricing
- Strong liability protection
- Excellent claims service
Whether you need a personal umbrella, landlord umbrella, or higher liability limits, we’ll help you choose the right protection.
Frequently Asked Questions
Is umbrella insurance worth it?
For many homeowners, drivers, landlords, and high-net-worth individuals, yes. It provides significant additional liability protection at a relatively low annual cost.
Does umbrella insurance cover my own injuries?
No. It generally covers your liability to others, not injuries to you or damage to your own property.
Can I get umbrella insurance without home insurance?
Some carriers allow it, but many require both your home and auto policies to meet certain liability limits.
Can landlords buy umbrella insurance?
Absolutely. Landlords often purchase umbrella coverage to protect against large liability claims involving their rental properties.
Protect Everything You’ve Worked Hard For
One lawsuit shouldn’t jeopardize your financial future.
Let Starwest Insurance Services review your current home and auto policies and determine whether an umbrella policy is right for you.
Get a Free Umbrella Insurance Quote Today
Starwest Insurance Services, LLC
📍 13752 Goldenwest St., Westminster, CA 92683
📞 (714) 893-7271
🌐 https://starwestinsurance.com