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  • Scott Brekne

The Importance of Umbrella Insurance

Umbrella insurance is a type of liability policy that provides coverage beyond the limits of your underlying insurance policies. Underlying policy types often include home insurance, auto insurance, boat insurance and more. The main benefit of umbrella insurance is that it can protect you from significant financial losses in the event that you are sued and/or found liable for damages.

Here is an example of a potential claim that may be covered by an umbrella liability policy. Let's say you are involved in a car accident and are found liable for damages to the other drivers, their passengers and/or 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 this coverage, the other party could sue you for your savings, home equity, investments and even your future income.

Another benefit is that umbrella insurance typically provides worldwide coverage. For example, let's say 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. One common exclusion would be an intentional act, meaning if you intentionally caused damage to the hotel the policy would not provide coverage.

Overall, umbrella insurance can provide peace of mind and financial protection in the event of a lawsuit or other liability claim. It can often be added to your existing home or auto insurance policies or purchased as a standalone policy. To be eligible for an umbrella insurance policy, the carrier typically requires that you have a minimum amount of liability coverage on your underlying policies (i.e., >=$300K liability on homeowners policy; >=$250K/$500K or >=$300K CSL on auto policy).

Brooks Robb & Callahan encourages all policyholders to speak with a licensed 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.

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