A personal umbrella insurance policy is an important and affordable product that can save your family from a financial disaster. Once you maintain limits of $500,000 on both your home and auto insurance policies, you may be eligible to purchase an umbrella policy. An umbrella policy is an extra layer of protection sold in increments of $1,000,000. This limit only responds to a liability claim against you after the initial $500,000 coverage from your home or auto insurance policy has been exhausted.

Single-Family Home In Suburbs

Every person’s greatest exposure is from driving his or her own car. We often think of car accidents as just fender benders, but what happens if you hit a pedestrian? What if you cause a 4-car accident? What if you hit a motorcyclist? Each of those examples could easily bring a judgment against you greater than $1,000,000. I have even seen very large claims result from children while away at school and a bicycle accident.

All of your owned exposures should be accounted for under your umbrella, not just your home and auto. Boats, motorcycles and rental properties should be included as well.

Normal, everyday accidents can turn very serious, and you should purchase a limit high enough to cover your assets so that you will not have to liquidate in order to settle a judgment against you. Limits up to $5,000,000 are easily available for most.

The average cost of a $1,000,000 umbrella over 1 home and 2 autos is under $200 annually, when written with the same company which writes your home and auto insurance.


Thanks to Craig Williams, President of JSW Insurance, for this guest post.

A licensed insurance agent since 1996, Craig holds licenses in California, Nevada, Washington and Arizona. He is proud to be a second generation independent insurance agent and runs his family owned business with his sister.

Craig recently served as the President of the Independent Insurance Agents and Brokers of California following his service on both its executive committee and its board of directors.

Craig leads a very active life outside of insurance.  He loves to snow ski, run, bike, hike and going out to see local, live rock music.  He volunteers his time as the treasurer of the very active Boy Scout Troop 834, and the financial secretary for the Bollinger Canyon Education Fund. Craig is also the father of a son who is in high school and a daughter who is in grade school.