Personal Umbrella Insurance Explained.

Personal Umbrella Insurance Explained.

So many consumers (and some of our clients), make the mis-conception that a personal umbrella policy replaces all other insurance policies. Somehow, the thinking goes that EVERYTHING is now covered by this 1 policy.

Noting could be further from the truth.

A personal umbrella insurance policy is extra protection over everything you own. It gives you $1,000,000 (the minimum) liability coverage over a pool that is in your yard.

Pool at your home
Your Pool

Maybe a toy you own (like a motorcycle).

Your Motorcycle too.
Your motorcycle

Maybe you own a boat and or snowmobile too. How about driving your taxi (kidding, really your car) as a Soccer Mom or Hockey Dad?


Let me tell you a quick story: Our clients 15 year old son went on vacation with his best friends family to Florida last year. The dad subsequently rented jetski’s for the 2 boys. Our clients son (never on a jetski before) slammed into a boat, causing all 4 occupants to be thrown into the water. One with a broken leg, one with a concussion, one with a broken collarbone and the 4th with bruises and hospital care need.

Our clients homeowners in New York responded and so far $70,000 has been paid out to the 4 claimants. ┬áLuckily, their umbrella policy hasn’t been touched but if was them who rented the jetski’s, the umbrella probably would have been responding to the claim.

So this is an example of how a personal umbrella insurance policy would respond. If the dad who rented the jetski’s (since he was the main at-fault party here) had a personal umbrella insurance policy, I’m sure it would have been a claim against it.

Be a smart insurance consumer and know your risks. A personal umbrella insurance policy isn’t for everyone but unless a professional insurance review is done, you wouldn’t know.

Tom Larsen,

Independent Insurance Broker




Comments are closed.