What Is personal umbrella insurance?

Liability lawsuits are unpredictable these days. While home and auto insurance carry liability protection, they most likely aren’t designed to handle a big claim, such as permanent disability.

If you lose a lawsuit that results in a payment amount that’s larger than your insurance policy covers, the remainder will have to be paid out of pocket.

The low-cost policy that may save the day

Umbrella insurance is a kind of personal liability insurance that takes over when the liability limit on your standard home, auto or other personal insurance policies is maxed out. You can acquire a policy for as low as $125 for the year.

The order of payment

Let’s consider a scenario based on the assumption that you have:

  • A home insurance policy that includes up to $1 million in liability protection
  • An auto policy with $1 million in liability coverage
  • An umbrella policy with a $1 million limit

If you are held accountable for a $250,000 settlement due to an injury suffered on your property, your home insurance policy would cover the entire amount, and the umbrella policy wouldn’t come into play.

However, if you faced a $1.5 million settlement from a multi-car accident, your auto policy would cover the first million, and the umbrella policy would pay the remaining $500,000.

The right coverage at the right price

The best plan is to purchase the appropriate level of home, auto or other insurance that provides the most comprehensive coverage for your particular situation at an amount suitable to your income and assets – and then rely on the umbrella insurance as a safeguard against catastrophic events.

Talk to your Insurance Broker about an umbrella’s support of all policies you carry, such as watercraft insurance, coverage for rental or vacation properties you may own and any home-business insurance you may have. You may find important exclusions. In some instances, an umbrella policy is the only way to protect against a liability that is excluded from most standard policies.

With a little added protection from a personal umbrella insurance policy, you can enjoy everyday life with more peace-of-mind.


Roughley’s team of insurance professionals is standing by to answer your call. If you have questions about your insurance, we invite you to call us and speak to one of our team members.

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Oshawa Location
Phone: 905.576.7770 • Toll Free: 1.888.558.0883
Fax: 905.576.3610
insure@staging.roughleyinsurance.com

Bowmanville Location
Phone: 905.697.4257 • Toll Free: 1.888.558.0883
Fax: 289.316.3662
insurebowmanville@staging.roughleyinsurance.com

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