When to Add Umbrella Insurance to Your Financial Plan
Liability risk doesn’t always look like risk. It can show up in everyday moments—hosting a party, adding a teen driver, or owning a home with a pool. And while your standard policies offer some protection, there are times when they may not be enough. In this blog, we’ll go over when it makes sense to add umbrella insurance to your financial plan, especially as your assets and responsibilities start to grow.
When to Consider Umbrella Insurance
Umbrella insurance is extra liability coverage that kicks in when the limits of your home, auto, or renters policy are exceeded. It’s designed to protect your financial plan from large, unexpected expenses like lawsuits, medical bills, or property damage claims. Below, we dive into some common life events that may signal it’s time to add umbrella insurance to your financial plan.
- You’re buying a home or investing in property
A new home brings more than a mortgage—it also increases your liability exposure. If someone is injured on your property or you’re found responsible for damage, your standard coverage might not be enough.
- Your net worth is growing
As you build savings, invest, or pay off debt, your financial profile becomes more complex. If you’re ever involved in a lawsuit, your personal assets could be at risk once your base policy limits are reached.
- You host events or gatherings at your home
Whether it’s a backyard graduation party or a neighborhood cookout, hosting others increases your liability risk. If a guest is injured or damages property, your homeowner’s policy may not cover the full cost. Umbrella insurance offers the extended protection that your financial plan may be missing.
- You have a teen driver on your policy
Teen drivers carry a higher risk of accidents, and if a serious incident occurs, your auto policy may not be sufficient to cover all damages. Adding umbrella insurance to your financial plan ensures your family has broader protection.
- You own high-risk features
Pools, trampolines, and even pets can increase your chances of a liability claim. Even if someone is on your property with permission, you could be held responsible if they’re injured.
Is It Time to Add Coverage?
There’s no one-size-fits-all answer, but if your lifestyle or assets are changing, it’s a good time to reassess your insurance. Umbrella policies are typically affordable and can provide significant protection in situations where your standard coverage runs out. Need a refresher on how umbrella insurance works? Read our full blog on umbrella coverage here.
At the Safeside Insurance Agency, our goal is to help you build the right insurance strategy—one that grows with you. Whether you’re adding coverage for the first time or just want to know what makes sense for your situation, we’ll walk you through your options and help you find the Right Insurance for the Right Price. Reach out to our team or request a quote to get started.
