Umbrella Insurance in Pennsylvania: The Extra Coverage Most Families Overlook
Imagine a scenario where a serious accident or claim exceeds the liability limits of your homeowners or auto insurance, leaving you potentially responsible for tens or even hundreds of thousands of dollars out of pocket. That’s where umbrella insurance steps in.
Umbrella insurance offers an extra layer of liability protection above and beyond your standard policies, safeguarding your assets and peace of mind.
What Is Umbrella Insurance?
Umbrella insurance is a type of personal liability insurance that kicks in when the liability limits of your home, auto, or other underlying policies are exceeded, or when certain risks aren’t covered by those policies at all.
Unlike standard excess insurance that simply adds more coverage to existing policies, umbrella insurance can also fill coverage gaps and protect against risks your primary policies may not include.
For a deeper look at how umbrella insurance works, you can visit the Insurance Information Institute. (link)
What Does It Cover?
A standard umbrella policy can include coverage for:
Additional liability beyond your existing home and auto policies
Personal injury claims, such as slander, libel, and defamation
Legal defense costs, including attorney fees
Certain incidents occurring outside the U.S.
These are the types of events that could easily exceed your standard coverage limits and leave you financially vulnerable.
Is It Affordable in Pennsylvania?
Yes. Umbrella coverage is surprisingly budget-friendly:
In Pennsylvania, a $1 million umbrella policy typically costs between $150 and $300 per year, depending on your risk profile.
Considering the high costs of serious lawsuits, this additional expense is often a small price to pay for substantial peace of mind.
Learn more about insurance regulations through the Pennsylvania Insurance Department.
Why It Matters for Pennsylvania Families
Rising claims and legal costs: Lawsuits and legal fees are becoming more expensive every year. A single serious accident could easily surpass your current coverage limits.
Protecting your assets: Your home, savings, and even future earnings could be at risk without additional liability protection.
Who Should Consider Umbrella Insurance?
You may benefit from umbrella coverage if you:
Own a home, savings, or other valuable assets that could be targeted in a lawsuit
Have increased liability exposure, like owning a swimming pool, dog, or teen driver
Want to protect yourself from broader threats such as social media defamation or libel
Are looking for a cost-effective way to boost your liability protection
For more resources on choosing coverage, visit the National Association of Insurance Commissioners.
Example: How Umbrella Insurance Kicks In
If you cause a serious car accident, and the total medical and legal costs reach $700,000, but your auto insurance only covers $500,000, the umbrella policy steps in to cover the remaining amount up to its limit, and may even cover related legal fees.
How Ebensburg Insurance Can Help
At Ebensburg Insurance, we're here to help Pennsylvania families make informed decisions about umbrella coverage:
We’ll help determine how much umbrella insurance makes sense for your lifestyle and assets
We’ll ensure your existing auto and home policies meet the eligibility requirements
We’ll bundle your coverage for the best possible pricing and convenience
Final Thoughts
Umbrella insurance is one of the most cost-effective ways to protect your financial future. For just a few hundred dollars a year, it offers coverage that could save you from devastating out-of-pocket costs after a major claim.
Not sure if umbrella insurance is right for you? Contact Ebensburg Insurance today for a free policy review. We’ll help you find the right coverage for your peace of mind.
