Don’t get caught in a Storm without an Umbrella

Written By Charlotte Insurance on April 18, 2017. It has 0 comments.

Even the best moments can go bad without warning. Imagine your next house party. You invite your friends, family, and the neighbors. The food is delicious, the kids have fun in the pool, and everyone is having a good time.

Until someone falls and gets hurt or eats bad dip that got a little warm. They’re sick or hurt, but they tell you when it happens that everything is fine. “Don’t worry about us,” they say. So you don’t. You apologize and bring them chicken soup but you don’t think much else about it.

To be on the safe side, you call your insurance company. They take down the information and say they’ll handle everything from there. Fast forward a few weeks, and you find out that the claim is going to cost thousands of dollars and your neighbors want to sue for more because of mental anguish and an inability to work.

Your liability insurance is only going to pay up to your policy limits. You can do the math, and this is quickly exceeding your coverage. What do you do?

Do you have an umbrella insurance policy?


An umbrella insurance policy is a form of liability insurance. It supplements your other liability coverage and pays the excess amount if you have a claim that goes over and above your normal coverage limits. It can be used for personal liability through your homeowner’s insurance or your auto insurance policy.

Umbrella policies are also good for businesses where claims can become very large rather quickly. Almost any form of liability coverage can benefit from an umbrella policy. Consider it an added layer of protection. Best of all, it’s not that expensive. A million dollar policy can cost as little as $150 for the year.


Take our earlier scenario. Without an umbrella insurance policy in place, you would have to pay the difference between the claim and what your insurance company pays. If you don’t have the cash, your assets could be used instead – that includes your home, your car, or your investments.

With an umbrella policy, your insurance company will pay the first part, up to your policy limit. Then the umbrella coverage kicks in and pays the rest, up to that policy’s limit. When you buy an umbrella policy, it’s a good idea to get the most amount of coverage you can afford because there’s no way to know how expensive a big claim might get. Not only will this coverage help pay for damages in a claim, it will also help pay your legal defense if you end up in court.

No one wants to think about a big car accident or a slip and fall that turns into a multimillion dollar lawsuit. Those things only happen to other people, right? Wrong. They can happen to anyone. With a good umbrella insurance policy, you don’t have to worry about the big claims because you’ll be covered no matter what happens.

Ready to look into additional coverage? Contact us at Charlotte Insurance for a free quote on your new umbrella policy.

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