You probably think you’ve heard it all now. Why would anyone need insurance for umbrellas, right? Silly insurance jokes aside, an umbrella policy gets its name because it can protect multiple policies underneath it, like that great big umbrella your grandparents had that seemed big enough to keep the entire family dry on rainy days.

An umbrella insurance policy is usually used with home and auto insurance policies, although there are business umbrella policies available as well. Specifically, an umbrella policy extends the liability coverage for the policies beneath. You can think of it as extra coverage. However, it’s extra coverage that’s more affordable than you might expect. Because the underlying policies handle the smaller claims, the extra coverage provided by an umbrella policy is less expensive per dollar of coverage while also raising your coverage limit dramatically.

In most cases, you’ll need a minimum amount of liability coverage on your property and auto insurance policies to qualify for the extended protection of an umbrella policy. What you get in exchange is not just expanded coverage limits but often also some additional protections that aren’t commonly available with a standard homeowners insurance policy.

For both home and auto insurance policies, liability risk is potentially one of the most expensive loss types most households can face. A fender bender in which you are liable might only cost a few thousand dollars to repair. Injuries, however, whether due to traffic accidents or any other type of mishap, can be much more costly. Without the right type of coverage, a bit of bad luck can change your family’s financial future forever. An umbrella policy helps you to secure coverage limits that may not be available on your home or auto insurance policy and effectively expands the liability coverage for both policies.

Getting the extra protection you need to safeguard your family future is easier and more affordable than you might think. Just reach out to your broker to discuss your needs.