Why Umbrella Insurance Is a Smart Choice for Extra Protection

When most people think about insurance, they focus on the essentials—auto, homeowners, or renters coverage. While these policies are crucial, they come with liability limits. If you’re ever involved in a serious accident or lawsuit that exceeds those limits, the financial consequences can be devastating. That’s where umbrella insurance steps in as an added layer of protection.

Umbrella insurance provides extra liability coverage beyond what your primary policies offer. It’s designed to protect your assets—like your savings, home, and future earnings—if you’re held responsible for a costly incident. It can help cover legal fees, medical expenses, or damages awarded in a lawsuit after your standard policy maxes out.

For instance, if you’re at fault in a car accident causing significant injuries, and the injured party sues for $1 million, your auto policy might only cover $300,000. Without umbrella insurance, you’d be personally responsible for the remaining $700,000. But with a $1 million umbrella policy, that financial burden would be lifted.

Umbrella insurance doesn’t just cover physical accidents. It can also help with legal claims related to libel, slander, false arrest, and even certain types of liability if you own rental properties. This broader protection is increasingly valuable in today’s world, where lawsuits are more common and often costly.

What Can Affect the Cost of Umbrella Insurance Coverage?

The annual premium of an umbrella policy can vary depending on several factors:

• Your current insurance coverage: Insurers often require you to carry a minimum amount of liability coverage on your home and auto policies before you can add umbrella insurance.

• Number of properties or vehicles you own: The more assets you have, the more coverage you may need.

• Your personal risk profile: Having teenage drivers, rental properties, pets, swimming pools, or frequently hosting guests can increase your risk, and potentially your premium.

• Driving record: A history of accidents or violations can lead to higher rates.

• Coverage amount: Policies typically start at $1 million, but can go much higher. The more coverage you choose, the more your premium will increase—though costs per million often decrease with higher limits.

Why Umbrella Insurance is a Smart Investment

In today’s world, unexpected accidents and lawsuits can happen to anyone—and the financial fallout can be severe. Umbrella insurance provides a crucial safety net that helps protect your assets, lifestyle, and long-term financial security. Whether you’re a homeowner, a frequent driver, or someone with savings and investments worth protecting, umbrella coverage offers valuable peace of mind.

At Morning Star Agency Insurance Services, we’re here to help you plan for life’s “what-ifs.” Our knowledgeable team will assess your current coverage and risk profile, explain how umbrella insurance can enhance your protection, and recommend a policy tailored to your specific needs. With the right coverage in place, you can feel confident knowing you’ve taken an important step toward safeguarding your future.

Call, email, or visit us — because when life rains down the unexpected, you’ll be glad you had an umbrella.