Whether you own a car, home, or watercraft, you know the importance of obtaining insurance to protect your investment. However, in some cases, your current, basic policy might not be enough. To truly protect your financial future, you may need to add to your policy with umbrella liability insurance. If you’re unfamiliar with this term, the following guide can help.

What Is Umbrella Insurance?

Essentially, this insurance policy forms an “umbrella” over an existing home, boat, or car insurance policy, sheltering you from a potential downpour of liability. You could say that umbrella insurance is an extended liability policy. If you are sued by someone who was injured in your home or whose property was damaged by your vehicle, and the monetary limits of your standard insurance are surpassed, your umbrella insurance will kick in. It will also protect you against libel, slander, vandalism, and invasion of privacy.

Who Might Need It?

Umbrella liability insurance is especially helpful for policyholders who own many assets—such as a collection of 25 signed guitars or several island vacation homes. It’s also important for those whose assets are considerably valuable—such as an antique car or a state-of-the-art home theater. Since they are more at risk of being sued, and more likely to be sued for a higher amount, umbrella insurance can grant them peace of mind. It’s also a smart choice for policyholders who own items that might raise the risk of injuries, such as swimming pools, diving boards, trampolines, or if they have aggressive animals.

You should consider umbrella insurance if you’re a landlord, you regularly volunteer, or if you take part in high-risk activities like wakeboarding or hunting.  If people interact with children—such as little league coaches—or regularly review businesses and products, they are also more likely to be sued and could benefit from an umbrella insurance policy.

If you believe this supplemental form of liability insurance is right for you, turn to Andrew Chao of Farmers Insurance® today. This St. Louis, MO, area agent works closely with each client to determine their needs, preferences, and lifestyle, so he can recommend the ideal business, home, auto, renters, or life insurance policy. He can also offer personal umbrella insurance policies to cover additional liability. To learn more about this trusted agent, visit his website, or call (314) 300-7690 to schedule a free consultation.