Here’s the scoop on umbrella insurance

Imagine letting your feisty dog Fido outside on a rainy day when he spots your neighbor running through the downpour. Thinking it’s playtime, Fido knocks your neighbor flat, and now you’re all wet under a mountain of liable medical bills.

Know what might have covered that? Umbrella insurance. No joke.

Never heard of umbrella insurance? Here’s the scoop.

Umbrella insurance (also called an excess policy) is a type of personal and commercial liability coverage that, like any good canopy, extends over other policies. 

If you’re responsible for a major accident that costs more than what’s covered under your existing insurance policy, umbrella benefits can help protect your assets from being washed away. 

Wondering if you need an umbrella policy?

Whether or not you need an umbrella policy depends on your circumstances. Some have more risks than others. It’s a good idea to do some self-reflection and, at least once a year, take a look at existing insurance coverages. 

READ: How to conduct a year-end insurance review in 3 steps.

Those with rental property have more personal risk than those without. At the same time, a person who owns a trampoline, swimming pool or even an excitable dog like Fido is at greater risk of encountering a liability bigger than what their standard policy may cover. 

The same is true for any business owner who welcomes the public to their property—if a big slip or fall costs more than the limits of liability coverage, pop open the umbrella.

Wondering about other tips to protect your business? Read: Insurance 101 for small business owners.

Unfortunately, lawsuits are commonplace today. Umbrella insurance may help with legal fees, too.

Consider talking with your UFG agent to see if an umbrella policy might be the right choice to protect your assets when bad luck pours.

Disclaimer: Subject to applicable legal requirements, United Fire & Casualty Company and its subsidiaries and affiliates (UFG Insurance) are no longer renewing or writing new personal lines coverage for current or potential policyholders in most states. To accommodate obtaining replacement coverage, we have entered into a renewal rights agreement for most of our personal lines business. Read more here.