• Michael Goodman

Do I need an umbrella insurance policy?

Updated: Oct 6

Do I need an umbrella insurance policy?
Do I need an umbrella insurance policy?

Samuel just bought a brand new car! Congratulations, that is a very nice ride Samuel.

Samuel immediately runs a stop sign, T-boning a family of 6. Unfortunately the family of 6 all perish in the accident, Samuel survives the accident, barely.

Samuel has insurance. Samuel has what the state requires for auto insurance. Samuel's insurance policy wont even begin to cover the amount of damage that was just done. Samuel was legal. Samuel was also greatly underinsured.

How could of Samuel added a layer of extra protection in between him and the other driver? There is many answers, but I will start with a couple.

  1. Increase the liability limits on his auto insurance policy.

  2. Purchase an umbrella policy that will serve as "extra" on top of his auto insurance policy, so that in the case to where his limits are "exhausted" or used up, he has more protection.

Umbrella policies are typically very affordable because of the fact that in order to purchase an umbrella policy, one must have an insurance policy in place already that will serve as the "underlying" policy or in other words the policy that stands in front of the umbrella. I'm not saying umbrellas are a "steal" but I am saying for the amount of protection that is provided, it is typically very affordable, especially when considering the alternative of not having an umbrella. Most umbrella policies start at policy limits of $1 Million and go as high as $20 Million. Often times the insurance company that is offering the umbrella will require a minimum limit of liability on the underlying policy that it is covering.

Mike Goodman, Agent



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