Feb. 10 is National Umbrella Day. While most people know that true Oregonians don’t carry an umbrella, it doesn’t mean you shouldn’t prepare to protect yourself. Think beyond raindrops. After a disastrous winter storm, there’s no better time to explore the ins and outs of personal umbrella insurance.
What is umbrella insurance?
A personal umbrella policy protects your assets and income from catastrophic loss. The umbrella stretches over your home and auto policies and helps to cover monetary risks that may exceed those policy liability limits.
What does it cover?
Umbrella coverage picks up where home and auto drop off. It can help cover things like:
- A major car accident where you’re at fault and the damage and injuries are extensive and exceed your policy coverage.
- Someone gets seriously injured on your property, and your liability exceeds your policy coverage.
- Lawyer fees if a lawsuit is brought against you for a covered liability.
These are just examples. To understand what is covered, you’ll want to refer to your specific policy.
How do you decide how much umbrella insurance coverage you need?
A general guideline in the industry is having umbrella coverage in an amount equal to your net worth. It’s one way to ensure that you are protected in case you find yourself in a situation where your umbrella policy is needed.
What is not covered under umbrella?
There are risks that are not covered by an umbrella. To understand the risks not covered, it is best to review the specific policy language, or discuss with your insurance agent.
An umbrella policy does not provide coverage for your own injuries or damages to property you own, such as your home or automobile. It provides coverage for losses that exceed your underlying auto and home liability limits.
Is umbrella insurance worth it?
While it depends on your circumstances, an umbrella is likely a great choice. Considering the generally affordable cost and the additional coverage provided, a personal Umbrella is a great option to protect you from the unpredictability of life. Having this additional protection will provide “peace of mind.”
Holly Kilgore is an insurance agent with Country Financial ® in West Linn, Oregon, and mom of four kids. She can be reached at [email protected].
“COUNTRY Financial®” is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, “COUNTRY”), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.