Automobile, Home Personal Umbrella Insurance: What You Need to Know 01/14/20 Have you ever thought about how much your life can change in the blink of an eye? One day you’re driving along with no worries, when suddenly you rear-end the vehicle in front of you—injuring the driver and putting him out of work indefinitely. He files a lawsuit and takes you to court, and you are found to be negligent and ordered to pay a $1 million in damages. You now potentially face losing your home, your automobile, any personal property and future wages. But you could help avoid all of this with personal umbrella insurance. What is personal umbrella insurance? In short, personal umbrella insurance protects you in situations where your “regular” insurance is not enough protection for you and your family against large and possibly devastating liability claims or judgments. It increases the amount of your liability protection beyond what is provided under your standard homeowners and auto insurance policies. Unlike other types of liability coverage, you can purchase personal umbrella insurance as a separate policy. But you must first have basic liability coverage for homeowners insurance, auto insurance or both. Why do you need personal umbrella insurance? While a personal umbrella insurance policy is optional, it does provide extra protection when you need it most and peace of mind if the unthinkable happens. Here are some real-life scenarios where personal umbrella insurance would be a big help: You’re driving your boat and hit a water skier or someone swimming Your teenage driver causes a serious accident A guest is seriously injured or dies in your swimming pool or on your swing set You cause a fire that damages neighboring homes What is covered in personal umbrella insurance? Liability coverages in an Alfa® personal umbrella insurance policy include Bodily Injury and Property Damage. If you're involved in a bodily injury or property damage suit, a personal umbrella policy can pay the costs of the investigation, defense and settlement of a covered claim (up to the policy limits) if your other insurance has been exhausted. If you lose earnings by complying with our requests during defense proceedings, we will pay you up to $250 a day (a maximum of $5,000) for your loss. We can also add extra coverage for business interests and farming operations that you already have covered in your original underlying policy. For more information on how to get additional financial protection against large liability claims and judgments with personal umbrella insurance, contact your local Alfa® agent today. All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the coverages, conditions and exclusions.