What is umbrella insurance?

An umbrella insurance policy is an added layer of protection

Umbrella insurance gives you liability protection above and beyond your underlying auto, home, and boat policies if you’re found responsible for someone else’s bodily injury or property damage. For instance, if you injure someone with your car and are found liable for damages that exceed your auto policy liability limits, your umbrella policy kicks in and pays for those excess costs up to the limits of the umbrella policy.

You can buy umbrella insurance at limits of $1 million, $2 million, or $3 million.

Should I buy umbrella insurance?

With jury awards increasing, umbrella insurance becomes vital to a sound financial plan, particularly if you own a business, expensive home, or other high-value assets. You’ll also want to think about an umbrella policy if you have a teen driver in the house, travel or entertain a lot, or are early in your career with years of earning ahead of you.

To qualify for umbrella insurance, you must have both your auto and home insurance with PEMCO. Your auto liability levels must be at least $250,000/$500,000 for bodily injury and $100,000 for property damage. You also must carry homeowner liability limits of $300,000.

Read customer reviews for PEMCO umbrella insurance coverage and learn more about it in our Perspective newsletter.

What does umbrella insurance cost?

Depending on where you live and your assets, the cost of a $1 million policy could start as low as $190 a year. You can get a free umbrella insurance quote from your local PEMCO agent or any PEMCO representative.