You want to create a safe, welcoming home for anyone, family member or guest. However, you can’t ignore the fact that from time to time, accidents will happen, and someone might get hurt in your home. When they do, you might face a lawsuit that could put your own financial security on the line. It’s at this point that your personal liability insurance can step in to assist you. 

However, liability insurance has its limits, and at times you might need more coverage than standard benefits will offer. An added benefit called umbrella liability insurance can offer you the assistance you need under these circumstances. Here’s how it works. 

The Basics of Personal Umbrella Liability Policies    
If you are found to be legally responsible for injuring someone or damaging their property, then you will have to pay for their losses. Without a personal umbrella liability insurance policy, any losses beyond the limits of your standard liability insurance coverage will come out of your own pocket.   

A personal umbrella liability policy provides an extra layer of insurance coverage over your standard liability policy limits. It protects your personal assets by kicking in when your standard liability coverage is exhausted. Usually, you will find that one umbrella plan can apply to multiple personal policies at once, including homeowners, auto, boat, motorcycle and renters policies.     

Who Needs an Umbrella Liability Policy?    
High-risk activities or hobbies—having a teen driver at home, owning a swimming pool, entertaining frequently—can increase your odds of being sued if someone gets hurt as a result of the circumstances. It is a good idea to supplement your insurance with a personal umbrella policy under the circumstances.   

How Much Coverage Do I Need?   
You do not want to be financially ruined by an accident lawsuit brought by someone who suffered harm on your watch. Therefore, you’ll want to consider your full net worth in order to adequately protect it with matching liability coverage.    

This is particularly true for high-value homeowners, who have more value wrapped up in their property than others. A lawsuit could be devastating to their security, and even the liability coverage within their homeowners plans might not be adequate. The added benefit of umbrella coverage—which can often provide extra coverage starting at a $1 million minimum—is that it will provide a high amount of additional protection that you might not even realize you need.    

How Much Does Coverage Cost?    
The good thing about umbrella coverage is that it generally is very affordable, particularly when you weigh the amount of additional benefits you will receive. Many policies only cost a few hundred dollars per year, which is comparable to, if not less than, the standard premium on your home or auto insurance. Get the additional protection you need with a personal umbrella plan today.