Agent Q&A: Personal Umbrella Policies

What is an umbrella policy? How does it work? Who needs one, and why?… Erik Opdahl, a TCI Insurance Agent with over seven years of industry experience, explains the what, how, who and why in this Agent Q&A…

Q. How does a personal umbrella policy work? What does it cover?

A. A personal umbrella policy provides you with an additional amount of bodily injury and property damage liability insurance (coverage for damage to others) in the event that an accident or lawsuit “uses up” the limits on an underlying policy.  It will, in most cases, extend beyond the liability limits on your current insurance policies for your home, renters, vehicles, boats, motorcycles, ATVs, snowmobiles, motorhomes, etc.

The main purpose of an umbrella policy is to protect your assets from an unforeseen event, such as a tragic accident, in which you are held legally responsible for damages or bodily injury.

Q. To which clients would you recommend a personal umbrella policy?

A. Truthfully, I would recommend an umbrella policy to everyone.  Your car, home, investments, retirement accounts, checking and savings (among others) are all considered assets. It is important to know that if you are sued for a large sum of money and you don’t have enough liability insurance to cover it, all of your assets are exposed and could be claimed in the lawsuit.

Q. Why do you think people may be reluctant to purchase a personal umbrella policy?

A. I think a lot of people don’t understand what the purpose of an umbrella policy is or what they do, and I also feel that people think they are expensive, which is not the case.

Q. What are the top three things you’d like people to know about personal umbrella policies?

A. First, umbrella policies are very cost effective, with $1,000,000 in additional liability coverage starting around $150 per year. Second, umbrella policies have the ability to cover most, if not all, of your personal liability exposures and may also pay for your legal defense in the event of a lawsuit. And third, an umbrella policy can provide comfort and peace of mind knowing that your assets are better protected if something unexpected or devastating happens.


If you are interested in a personal umbrella policy, contact Erik, or one of our other experienced TCI Insurance agents for more information and a quote. You can also read more about umbrella policy coverage in our article, Why You Need Umbrella Insurance.


TCI Insurance Agent, Erik Opdahl