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  • Jeff Joseph

Do You Need Umbrella Insurance?

A colorful umbrella being held up in the rain by an arm in front of a green background.

Why You Should Consider Personal Umbrella Insurance

Most of us try to think optimistically and assume that serious accidents won’t happen. But the fact is, they can happen to anyone. This article explains what Personal Umbrella Insurance is, and what type of accidents can occur that might make you wished you had purchased it.

What is Personal Umbrella Insurance?

Personal Umbrella insurance is a supplemental policy that provides extra liability coverage that helps cover expenses, if you are sued for damages and are found at-fault. Umbrella Insurance is not a stand-alone policy and can only be purchased if you already carry auto insurance, home insurance, or another form of insurance. Umbrella Insurance extends beyond the limits of your home or auto insurance, should you be found liable and sued for a large sum of money.

Two women in a courtroom standing before a judge behind the bench.

Do I Really Need Umbrella Insurance?

Whether you cause an accident that results in serious damage to property, personal injury, or even death; or if a serious accident happens on your property, you can be held responsible. If you are sued, your hard-earned assets and future income could be in jeopardy and you may find yourself needing to file for bankruptcy. If you carry Umbrella Insurance and an unexpected serious accident does occur, you will breathe a little easier knowing that you will not lose your life’s savings, thanks to the additional liability coverages for injuries, property damages, and lawsuits. Since Umbrella Insurance is not required, it is totally up to each individual to decide whether or not they want to have peace-of-mind knowing they’re covered against significant liability.

Types of Accidents that Umbrella Insurance Covers

Although most people think that they will never be sued for $1,000,000, it happens and it can have devastating consequences. There are a variety of accidents that can occur where you could be found liable and be sued for a large sum of money, but here are a few scenarios that are not that far-fetched when you think about them.

Two little girls jumping on a trampoline outside with trees behind them.

Recreational Accident

Scenario: Your daughter invites a friend to your home after school to play on the trampoline in your backyard. Her friend falls off the trampoline, suffers an injury, and is rushed to the hospital. She undergoes major surgery and spends several months recuperating. She also requires physical therapy for the next year. Her parents decide to sue you for $800,000 for the cost of her medical treatment, her long-term rehabilitation, and pain and suffering. Maybe you have an extra pile of cash you don't need and it's not a problem. Or, maybe it will land you in bankruptcy court.

Many people own trampolines or other types of property that could cause serious damage such as a swimming pool, and accidents like these are not uncommon. With Umbrella Insurance, you would be protected to cover the cost of a lawsuit due to these types of situations.

A party with young people drinking out of red cups and laughing.

Underaged Drinking Party

Scenario: Your teenager has an 18th birthday party in your home for a group of friends. One of the guests left your house and was in a horrific car accident. The accident was attributed to alcohol consumed at your home. The court decides that you should have prevented the minor from drinking alcohol and that you are responsible for any damages.

Did you know...that even placing an alcoholic beverage near a minor with the intent to allow him/her to drink, or buying alcohol for that minor and placing it in the underage person’s vehicle, both qualify as supplying alcohol.

Either of these scenarios could happen to anyone. The reality is that if you find yourself at the wrong end of a significant lawsuit, it can wipe out your life’s savings and your future earnings. These are things to consider when deciding if you will purchase a supplemental Personal Umbrella Insurance policy.

An overhead view of a group of navy blue opened umbrellas.

What Doesn't Umbrella Insurance Cover?

Umbrella insurance still doesn’t cover everything that a standard policy does. It only applies to liability. Here is a list of what is not included in an Umbrella Insurance policy:

  • Your own injuries

  • Damage to your personal property or belongings

  • Property damage or injuries that you intentionally cause

  • Damage caused while you are committing a crime

  • Property damage or injuries that you cause while performing business or professional activities

  • Any liability that you assumed through a contract prior to the incident

  • Anything that is specifically excluded from your underlying home or auto insurance policy

  • Other people’s injuries or damages that your business is liable for


Many people think that they will never encounter a situation where they will need Umbrella Insurance coverage. But accidents happen. If you are considering adding Umbrella Insurance to your home and auto policy, the insurance professionals at Mitchell-Joseph Insurance are here to answer any questions you may have. Contact us through our website to set up an appointment or call (585) 624-2180.


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