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Aronson Insurance Blog

What Is a Personal Umbrella Policy and Why Do I Need One?

Posted on June 17, 2020


What Is a Personal Umbrella Policy and Why Do I Need One?

Most insurance policies describe exactly what they cover by name. Auto insurance for your autos, home insurance for your home, business insurance for your…well, you get the picture!  One type of policy which does not follow this trend is an umbrella policy. Although most people don’t believe an umbrella policy covers an umbrella, many do not understand what it does cover!

What Is a Personal Umbrella Policy?

Simply put, an umbrella policy is a policy which provides additional liability insurance coverage above your other policies. A personal umbrella policy provides coverage in addition to your auto and home as well as other items such as boats or ATV’s.

Why Do I Need One?

All insurance policies have caps on how much liability protection you can obtain. For example, most personal auto policies have a $500,000 per accident limit and homeowners are typically $500,000 or $1,000,000.

Purchasing an umbrella insurance policy to go above these limits is a great way to position your liability insurance to be able to respond to larger claims made against you.


If you’re interested in receiving an umbrella insurance policy quote or discussing your options with a licensed agent, call Aronson Insurance right now at 781-444-3050 or Click Here. Otherwise, keep reading to learn more.

What Can I Lose?

In the event you are found liable in a covered loss, the amount of coverage on your policy does not limit how much you will owe. Fortunately, in many cases, the liability limit is enough to cover the amount. However, when the amount of your coverage on the policy is lower than the claim awarded by a jury, you would still responsible for the difference. Your personal assets are now at risk!

This could include:

  • Existing Assets
  • Your Business
  • Future Earnings

Everything you have worked for to build as well as future income and earnings could be at risk.

How Can I Calculate How Much Liability Coverage I Need?

There is not really a simple solution or one-size-fits-all answer to this question. Some claims on personal umbrella policies are a result of known risks such as driving or having a pool at your home. Many, simply, come out of unfortunate circumstances.

However, as we discussed, your current and future assets are at risk, so a quick calculation is a good place to start to understand your potential exposure. Fill in the column to the right under “Value” based on the “At Risk” items. Total those up and you can compare it against your current liability coverage.

Umbrella Insurance in Massachusetts 

While we can never know what we are going to face tomorrow, we can protect ourselves financially with an umbrella insurance policy. These policies are built to protect you, your family, and your business assets against the worst-case scenario. Their high protection and low cost make them a significant component of your risk management strategy.

If you are a client, call your account manager today to review your policy. If you are not a client, call us today to get a detailed review of your current policy and learn about your options and benefits of working with your local independent agency, Aronson Insurance.

We’ve partnered with local residents for over 100 years, and we’re honored to continue serving Massachusetts residents with flexible and personalized policies. To get professional advice on any of your insurance questions and concerns or to schedule a consultation and find the right coverage for you, call us today at 781-444-3050.