Norton Seal Black father with short-cropped hair carrying his black daughter on his back playing airplane together.

Understanding Insurance

Personal Umbrella Insurance Is Security for Your Finances

a blue umbrella with red circles

From installing a home security system to simply locking your doors at night, it comes natural for you to protect your home from the unexpected. But have you considered putting that same level of care into protecting your financial well-being? While something like a home security system helps protect your home, having umbrella liability insurance is just as important and acts as a financial safety net to protect your assets and future earnings from the unexpected.

How so?

If you're at fault for an accident, whether it be at home or on the road, you may be required to pay for the injuries or damages you're liable for. The primary liability limits on your home, auto, or recreational vehicle policies may not be enough to pay for these damages. If your primary liability insurance can’t cover all the costs, you may be forced to pay out of pocket, risking your assets and future earnings.

That’s where umbrella insurance can help.

Umbrella insurance steps in to pay for damages above your primary liability limits up to the umbrella policy limit. It also covers legal expenses you may otherwise be responsible for. With an umbrella policy, you’ll have peace of mind knowing that the dreams you’ve worked so hard to achieve are protected from the unexpected.

Why Do I Need Personal Umbrella Insurance?

a blue car with a red tail

Accidents can happen unexpectedly. Umbrella insurance can help you be prepared.

Consider these examples:

  • If the sidewalk up to your front porch isn’t properly shoveled and salted in the winter, someone could slip and fall, possibly injuring themselves — and you may be liable.
  • Imagine you take your dog for a walk and they accidentally knock over someone on their bicycle, causing them serious injuries that result in physical therapy, loss of income, hefty medical bills and more.
  • You fail to see a car slow down in front of you and you rear end them, causing damage to the vehicle in addition to injuries to the drivers and passengers.

While your home or auto insurance could cover the damages you are liable for in these cases, it may not be enough to pay for all of it — leaving you on the hook for the rest. Having umbrella insurance can help cover what’s left after your home or auto insurance liability coverage is exhausted.

Talk to Your Agent About Umbrella Insurance

If you’re looking to build more financial security for yourself and your loved ones, connect with your American Family Insurance agent to talk about purchasing a personal umbrella insurance policy. They can help get you set up with a policy that can help protect what matters to you. Personal umbrella insurance policies start at $1 million, with the option to increase in million-dollar increments. Your agent can help you decide what coverage limit is appropriate for you.

American Family Mutual Insurance Company S.I. & its Operating Companies 6000 American Parkway Madison, WI 53783

How would you rate this article?

Related Topics: Insurance Needs , Insurance Terms , Finance