What assets does umbrella insurance protect?

Umbrella insurance protects your assets and your future income from a large liability claim or lawsuit. It is extra liability coverage that pays after your home and auto policy limits run out, shielding what you own from being taken to satisfy a judgment.

The assets an umbrella helps protect include things like your savings and investment accounts, your home equity, other property you own, and even your future wages, which a court could garnish to pay a judgment. Without an umbrella, a serious claim that exceeds your underlying limits could put all of that at risk.

An umbrella responds to many situations, such as a major car accident you cause, an injury to a guest at your home, a dog bite, or certain personal lawsuits like libel or slander. It generally does not cover your own business activities or intentional acts, so it is built for personal liability.

For example, suppose you cause a multi-car crash in Georgia and a court awards $1.2 million in damages, but your auto liability limit is only $300,000. Without an umbrella, you could owe the remaining $900,000 from your savings, home equity, and future paychecks. A $1 million umbrella would cover that gap and protect your assets.

Because the cost of an umbrella is usually modest compared with the protection it provides, it is one of the best values in personal insurance for people who have assets to lose. You can read more on our umbrella insurance page. Want to see how much umbrella coverage fits your net worth? Start a free coverage review at /coverage-review/ and we will help you choose a limit.