Do You Need an Umbrella Insurance Policy? How It Protects You Beyond Standard Coverage
- B1 Insurance Team
- Jun 26
- 2 min read
Insurance policies like auto and homeowners provide essential coverage, but there are situations where the limits of those policies may not be enough. An umbrella insurance policy is designed to offer extended liability protection when your primary policies are exhausted, helping protect your savings, future income, and peace of mind.
What Is Umbrella Insurance?
Umbrella insurance is a secondary liability policy that provides additional coverage beyond the limits of your home, auto, or other personal liability policies. It also covers some claims not included in standard policies, such as libel, slander, or false arrest.
For example: If you're responsible for a multi-vehicle accident and the damages exceed your auto policy’s liability limit, your umbrella policy would cover the remaining costs — up to its limit.
Who Should Consider an Umbrella Policy?
Umbrella coverage is often associated with high-net-worth individuals, but in reality, it’s a valuable safeguard for anyone who:
Owns a home or rental property
Has a teen driver in the household
Frequently hosts guests or gatherings
Owns a dog or pool
Volunteers or serves on a nonprofit board
Is at risk for personal liability claims through work or lifestyle
Even modest lawsuits can lead to six-figure judgments. Umbrella insurance offers an added layer of protection without significantly increasing your overall insurance costs.
What Does It Cover?
A standard umbrella policy provides:
Additional liability coverage: Beyond what’s included in your home, auto, or other base policies
Legal defense fees: Even if a claim is groundless
Worldwide coverage: In most cases, coverage applies anywhere in the world
Protection against personal injury claims: Including defamation, invasion of privacy, or wrongful eviction
It does not cover your own injuries or property damage, business-related liability, or intentional acts.
How Much Coverage Do You Need?
Umbrella policies typically begin at $1 million in additional liability coverage and can increase in $1 million increments. The right amount depends on your total assets, income, and potential exposure to liability risks.
For many clients, a $1 million umbrella policy offers sufficient peace of mind, often for less than a few hundred dollars annually.
Let’s Review Your Risk Together
At B1 Insurance, we take the time to assess your full risk profile. We’ll help you determine whether umbrella insurance is appropriate for your situation, and if so, which coverage level provides the best value.
An umbrella policy isn’t about expecting the worst. It’s about ensuring you and your family are protected even when life takes an unexpected turn.
Contact Us for a Complimentary Umbrella Evaluation
Give us a call, or fill out our contact form today!
☎️ 617-896-3548
📍 Umbrella policies issued in Connecticut, Maine, Massachusetts, and New Hampshire
