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Umbrella Insurance: Extra Protection for Unexpected Situations

By April 20, 2023August 31st, 2023No Comments

Do you want to protect yourself from unexpected and potentially expensive situations? If so, you may want to consider umbrella insurance. Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your existing policies, such as auto or homeowner’s insurance. In this blog post, we’ll explain what umbrella insurance is and how it can provide you with extra protection.

What is Umbrella Insurance?

Umbrella insurance provides additional liability coverage when your existing policies are not enough. For example, if you are involved in a car accident and the damages exceed your auto insurance policy limit, umbrella insurance can cover the remaining costs. Similarly, if someone is injured on your property and your homeowner’s insurance policy limit is reached, umbrella insurance can help cover the additional expenses.

Umbrella insurance can also provide coverage for situations that are not covered by your existing policies, such as slander or defamation lawsuits. Additionally, umbrella insurance can cover legal fees and other expenses related to a covered claim.

Why Do You Need Umbrella Insurance?

You may be wondering if you really need umbrella insurance. The answer is that it depends on your personal situation. If you have significant assets, such as a home or retirement accounts, umbrella insurance can help protect them in the event of a lawsuit. Similarly, if you have a high-risk job or participate in activities that could result in liability, such as coaching a sports team, umbrella insurance can provide extra protection.

Even if you don’t have significant assets or a high-risk job or activities, umbrella insurance can still be beneficial. It provides peace of mind and can protect you from unexpected financial losses.

How to Get Umbrella Insurance Coverage

Umbrella insurance is typically available in increments of $1 million in coverage, up to $5 million or more. The cost of umbrella insurance varies depending on your personal situation, such as your assets and risk level.

To get umbrella insurance, you will need to have underlying insurance policies, such as auto or homeowner’s insurance, with minimum liability limits. You can purchase umbrella insurance from the same company that provides your underlying policies or from a separate insurer.


Umbrella insurance provides extra protection and peace of mind in the event of unexpected and potentially expensive situations. If you have significant assets or participate in high-risk activities, umbrella insurance can be particularly beneficial. At Palacio Miller Agency, we can help you find the right umbrella insurance coverage for your needs and budget. Contact us today to learn more.