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  • Writer's pictureScott Brekne

Do I Need Umbrella Insurance?

Updated: Apr 7, 2023

Umbrella insurance provides the policyholder and their household members with personal liability coverage in excess of the limits within their underlying insurance policies. Some underlying insurance policies that may be relevant for an umbrella are: home insurance, auto insurance, boat insurance and more. Umbrella insurance is intended to provide you with protection from significant financial loss in the event you are found liable for damages.


For example, you are involved in a car accident and are found liable for damages to the other drivers, their passengers and their vehicle. If the costs of the damages exceed the underlying limits of your auto insurance policy, your umbrella insurance policy could be used to cover the additional amount due. Without umbrella insurance, the other party could sue you for your savings, home equity, investments and even your future income.


Umbrella insurance provides coverage worldwide. For example, if you are on vacation and accidentally cause damage to a hotel room, your umbrella policy could provide coverage for any damages or losses that result from the incident. A common exclusion would be an intentional act, meaning if you intentionally caused damage to the hotel then the policy would not provide coverage.


In summary, umbrella insurance can provide peace of mind as well as financial protection in the event of a lawsuit or liability claim. Umbrella insurance can often be added to your existing home or auto insurance policy or it can be purchased as a standalone policy. In order to be eligible for umbrella insurance, insurance carriers typically require that you have a minimum amount of liability coverage on your underlying policies (i.e., >=$300,000 on a homeowners policy; >=$250,000/$500,000 or >=$300,000 CSL on auto policy).


Brooks Robb & Callahan encourages all policyholders to speak with a licensed insurance agent prior to making any coverage decisions.


Have questions? Contact Brooks Robb & Callahan for any of your insurance needs.


About Brooks Robb & Callahan

Brooks Robb & Callahan is a family owned and operated independent insurance agency protecting personal and commercial clients from property and casualty risks since 1871. Sisters Kristen Ducharme and Lindsey Stortz acquired the business from their long time family friends in July 2013. Their brother, Scott Brekne, joined the business in 2021. Together they continue to run the business the way it always has been – by family with honesty and integrity. They feel incredibly blessed to have the opportunity to work together every day.


The information provided in this blog is for educational purposes only and is not a substitute for professional advice. Insurance coverages and policies can vary significantly based on individual circumstances and the terms of the policy. Brooks Robb & Callahan recommends consulting a licensed insurance professional or your insurance carrier to determine the appropriate coverage for your specific personal needs.

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