What is Umbrella Insurance?

Because weather is unpredictable, it is wise to have an umbrella ready in the event of unexpected rain. So just like the name implies, this type of policy acts like an umbrella, providing protection against a wide range of potential financial dangers, and unforeseeable mishaps.

Umbrella Insurance

What Umbrella Insurance Covers

It is important to note that umbrella insurance is a form of liability insurance, therefore it does not cover your own medical expenses or losses to your property.

However, what exactly is covered by your umbrella policy depends on how you decide to set it up. In most cases, umbrella insurance protects you from:

Whats Covered

  • Injuries you cause in a car accident
  • Injuries someone suffers on your property
  • Property damage your cause in an accident
  • Property damage dependent or child causes
  • Property damage your pet causes
  • Attorney fees and other legal costs if you’re sued

What not covered

  • Your own medical expenses
  • Losses to your property


Actually, anyone with a job who expects to keep the income they earn could benefit from having an umbrella insurance policy.

What would happen, for example, if someone made a delivery to your house, slipped on a sidewalk recently wet by your sprinkler system, and suffered severe head injuries from the fall? They will likely sue you.

Your homeowner’s insurance kicks in, and pays up to its maximum limits. But the jury finds you are responsible for an extra $500,000 over your homeowner’s limits.

Ask yourself: How long would it take you to pay that off with your weekly paycheck?

Umbrella insurance covers the amount that exceeds your homeowner’s coverage, usually up to $5 million—sparing you from a financial nightmare, along with paying the attorney to help you survive it.

Relative to the amount of protection you get, umbrella insurance is a good value. Especially since it’s unlikely you will ever have to make a claim against it. So your specific cost will be determined by:

-The amount of coverage you purchase
-Your insurance carrier’s provisions
-Your risk profile and driving record
-You can save even more money by purchasing umbrella insurance from the same carrier who provides your home and/or auto insurance-check with us to make sure.

Many people underestimate the true value of their net worth — especially if you haven’t done careful accounting since you were just starting in your profession and life. When considering all you have achieved, you may decide that you need extra protection—an umbrella insurance policy. A policy that will cover you above and beyond what any single policy might cover.

If you get into an auto accident, or someone falls into your pool and hits their head, or whatever fluke occurrence happens, you can be sued. And what if the award goes to the plaintiff?

It is likely that your standard home or auto policy will not be enough to cover what the plaintiff is asking for.

You bet you can. Not only can you lose what you worked for, you can lose part of your wages for the rest of your working life. (Most people don’t know this.)

And, Don’t Kid Yourself — Lawsuits Happen To Good People.

It cost nothing to initiate a lawsuit, legal defense is expensive, and outcomes are unpredictable. It is surprising to most people just how easily they could lose everything they have worked for.

Covering a Wide Range of Risks

While your existing insurance may protect you to an extent, an umbrella policy goes much further for less cost than upping the limits on your existing policy, because it covers for different types of risks. Umbrella insurance is also portable, in most cases; so it can follow you when and wherever you travel―even overseas.

Since the terms of umbrella insurance policies will vary, depending on insurance companies, and your own personal needs, it is important to work with a qualified insurance agent from Graham to discuss the benefits, restrictions, and coverage from each carrier.

The Graham Insurance Difference

  • While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy that actually covers you.

Contact us and let the professionals at our company help you forge the strongest shield possible to help you protect the things you are working hard to build.