What Is An Umbrella Insurance Policy?

There are several areas of your life that you want to be protected by an insurance policy. Insurance policies give you the security and peace of mind that you need. The two most common areas that people want quality insurance is their home and their car. Both are significant investments that would be detrimental if anything tragic were to happen to them. While insurance plans are the best way to give yourself and your belongings protection, there is always a chance that something could happen, and your insurance policy isn’t sufficient to pay for any repairs or losses.

This is where an umbrella insurance policy can be an excellent tool to have. These umbrella plans give you additional coverage that goes above and beyond what your auto and home insurance policies provide.

What does an Umbrella Insurance Plan Do?

These insurance plans work like a supplemental insurance plan that gives you additional coverage that your basic plans don’t provide. The primary goal of these policies is to protect your assets from any unforeseen tragedy. For example, let’s say that you were in a car accident and you were at fault for the crash. Your umbrella insurance policy will give you the coverage that you need to pay for the other person’s injuries and your legal fees.

Having additional liability coverage for your plans is a good way of offset any lawsuits or damages that could happen unexpectedly. Without the supplemental coverage, you could easily have your savings account drained because of some tragedy or act of Mother Nature.

Why you Should Have Umbrella Insurance Coverage

If something happened that you were liable for, on your property, because of an automobile accident, or for any other of the possible scenarios, you could be sued for a massive amount of money, which could quickly drain your bank accounts and savings accounts. A simple accident or slip up could easily wreck everything that you’ve worked hard to earn. It can turn your retirement plan upside down and leave you stranded with a massive amount of debt and bills that you don’t have the money to pay for.

Some of the Things Umbrella Plans Cover

While there are dozens of different scenarios where one of these policies could be beneficial, there are some common ones that they are used to help protect policyholders. One of those is dog bites. If you have a furry friend, and it was to bite one of your neighbors, you could be sued for injuries and medical bills. In just about every situation, your umbrella policy will pay for any legal fees and hospital bills.

Another common use for these umbrella policies is for any automobile accidents like the example that we listed above. This is particularly the case if there are several cars involved in the accident, even if nobody is injured in the wreck, the car repairs alone can end up costing hundreds of thousands of dollars.

Who Needs Umbrella Insurance?

Just about everyone can benefit from having an umbrella insurance plan to give them additional protection from whatever the future holds, but some people should put more stock into these plans. One of those groups of people is landlords. If you have a rental property that you use as a source of income, you should always consider investing in a sizeable umbrella policy.

There are an almost endless number of things that could happen when you’re a landlord that could cause your financial suffering. Regardless of how many tenants that you or the number of properties, you should have a quality umbrella supplemental plan to protect yourself and your investments.

How much does an Umbrella Insurance Policy Cost?

Most people that are going to get one of these plans are going to purchase a policy around $1 million and the majority of applicants assume that a policy of that size is going to be too expensive to afford. This couldn’t’ be further from the truth, in fact, these plans are much more affordable than most people think.

For anyone that is looking to buy a million dollars of protection, you can expect to pay around $200-300 every year for your policy. For every million that you buy, it will cause your premiums to rise an additional $100, which is a small price to pay for the peace of mind that you’ll get for these plans.

Every insurance company is going to be different, which means all of them are going to have a different algorithm for calculating their rates. These are only rough estimates of how much you will pay in annual fees for your coverage.


At Longevity Brokers, we are proud to give our clients quality insurance policies at an affordable price. If you have any questions about umbrella insurance plans or about any of the other insurance products that we offer to the Denver, Colorado area. We know that getting insurance protection is an important part of your life, but we know that finding the best insurance plans for you can be a long and complicated process. Our agents are here to make the process as quick and easy as possible.

Don’t wait any longer to get the insurance coverage that you need to protect yourself and your finances. If you want to get the process started, please contact one of our agents today, and we will be happy to answer those questions. You can call us at (720) 209-4598, or you can use our contact page, and one of our agents will contact you as soon as possible.

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