The Personal Umbrella Policy—Do You Have Enough Protection?

What is a Personal Umbrella Policy?
A personal umbrella policy provides an added layer of liability coverage over that of your home, watercraft, and auto policies.

What limits can I purchase?
Limits for the personal umbrella policy begin at $1 million and can go up to $50 million and higher.

How much does a personal umbrella policy cost?
The personal umbrella policy is one of the least expensive policies on the market today. Costs vary according to underlying exposures, but can be purchased for as little as $250 per year.

How is legal defense covered on the personal umbrella policy?
Most personal umbrella policies pay for legal defense outside the policy limits to negotiate on behalf of the insured.

I am not wealthy. Do I still need a personal umbrella policy?
You do not have to be a millionaire to have need for a personal umbrella policy. Now, more than ever, we are all threatened by risks that affect our financial assets and lifestyle. Personal liability lawsuits can run in the multi-million dollar range. If you drive a car, walk on the street, or have people into your home, whether it is rented or owned, you need a personal umbrella policy to protect you. As we have seen from recent headlines, even if someone is on your property illegally, you could still be responsible if they are injured.
I have my automobile insurance with company X and my homeowners insurance with company Y.

Where do I purchase my personal umbrella policy?
A personal umbrella policy can be purchased on a stand-alone basis.

Be sure to check the requirements on your personal umbrella policy for underlying limits of liability. You want to be sure you are not over insured and, at the same time, that there is not a gap in coverage.

Remember that no one ever regretted having too much insurance at the time of a loss.

John Gracey Backer, CPA
John Gracey Backer, CPA

John Gracey Backer, CPA, is the Treasurer of Gracey-Backer, Inc., an Insurance Agency in Delray Beach, Florida specializing in All Lines of Malpractice, Professional and Personal Insurance for the Healthcare Provider. He can be contacted at (561) 404-5828, or at

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