Personal Umbrella Policy in Massachusetts

WHAT IS IT? WHO NEEDS IT? COVERAGES OFFERED

A personal umbrella policy is a secondary form of liability insurance. As a secondary insurance, it supplements one or more underlying, primary policies. A policy may be used to supplement a homeowner, renters, auto, boat, or other insurance policy.

Anyone may benefit from getting personal umbrella insurance, but there are two types of individuals that this insurance is especially good for. Individuals with a lot of assets might need the added protection, as they can be a target of lawsuits, and people who are exposed to a lot of risk might need the extra insurance coverage.

People with a high net worth
Dog owners (especially those whose dog is an aggressive dog breed)
Landlords and people who rent out a room in their home
Individuals who have a specialized vehicle (e.g. pilots, bikers, and boaters)

What is a Personal Umbrella Policy?

There are two ways that umbrella insurance might supplement underlying policies. Depending on a person’s needs, it might be used to fill in coverage gaps that the primary policies have, or it may be used to add onto the limits of underlying policies. If needed, a single umbrella policy may be able to serve both purposes for multiple underlying policies.

Who Should Consider Getting Personal Umbrella Insurance?

Some Massachusetts residents who might benefit a lot from an umbrella policy include:

People with a high net worth
Dog owners (especially those whose dog is an aggressive dog breed)
Landlords and people who rent out a room in their home
Individuals who have a specialized vehicle (e.g. pilots, bikers, and boaters)
Individuals who wants additional liability limits

(This isn’t a comprehensive list but just a few examples of people who may want an umbrella policy).

How Much Does Personal Umbrella Insurance Cost?

As with any type of insurance, the rates for personal umbrella insurance vary from policy to policy and person to person. Rates are based on many different considerations. Even location can be a factor. For example, residents of Boston, MA might have different rates than residents of Worcester, MA.

In general, however, umbrella insurance offers a lot of protection for little cost. Policies often provide at least $1 million in coverage, and they can have much higher limits. Because they’re secondary policies, though, insurers are able to keep premiums low.

How Can Massachusetts Residents Obtain Personal Umbrella Insurance?

Massachusetts residents who are interested in the benefits that a personal umbrella policy offers should contact an independent insurance agent, as shopping for a policy can be complex. Many policies require policyholders to maintain minimum levels of underlying coverage, or else the umbrella policy’s protections may be voided. An insurance agent can not only help residents find an umbrella policy, but an agent can also help residents make sure they have any required primary policies in place so that their umbrella coverage isn’t compromised.