Why Carry an Umbrella Policy?

Services for Real Estate Pros Insurance NPN # 13379201

How often do you hear on the news about an injured car accident victim who received a million dollars in damages because the driver of another car accidentally crossed the double yellow or ran a red light?

 We all feel bad for the victim, but have you ever wondered who pays those million dollars?

It’s the other driver. And what if that other driver, who had no malicious intent but who simply looked away for just a second, were you?

And what about the small business owner who must close up shop after someone slips and falls in her store and she can’t afford to stay open while paying the awarded injury claim?

Put yourself in that hapless driver and business owner’s shoes. You’ve been ordered to pay a million dollars in damages. Your car or business insurance policy covers $300,000,

Then the courts go after your personal and business assets. Soon, you’re ruined, all because of a careless mistake.

Fortunately, this doesn’t have to happen if you protect your liability with a personal umbrella insurance policy.

For a small additional premium each year you can purchase another million dollars of insurance coverage as a buffer between you, the courts, and financial ruin. Umbrella insurance policies offer protection against a wide range of insurable events, like:

  • Injury on your property
  • Awards for accusations of slander
  • Liabilities arising from employee errors

Unfortunately, even if you are sued and a large judgment does not result, you may be liable for legal fees and court costs that eat into your assets. An umbrella insurance policy can prevent that from happening.

Before getting an umbrella insurance policy, be sure to check your limits and deductibles on your current policies. Your insurer will likely declare you responsible for bridging any gaps between policy limits and umbrella policy amounts so make sure you have sufficient insurance and resources.

Accidents, moments of negligence, or even frivolous lawsuits happen every day. If you have assets that you have worked hard to build and protect, don’t lose them due to one mistake or even an out-of-the-blue lawsuit. Purchase an umbrella insurance policy and add a buffer between your assets and financial ruin.

Personal Umbrella Policies are relatively inexpensive, and can range from $12-$25 per month depending on coverage limits

Make sure you are covered in case you get into a situation.


Posted by


Comments (55)

Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...A Local Expert in all The Hamptons

Frank: Great post for those who are unaware of the real effects of our litigious society....I have an umbrella policy that I have carried for all my years in real estate--this is so important to us because we are constantly at the effect of what happens when you drive people around--not many professions require that you have people in your car to do business!

Feb 08, 2013 11:21 PM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Great post Frank and Katherine has me fixed up with a great umbrella policy!

Feb 09, 2013 01:23 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Frank -- I have carried an umbrella for many, many years. It hardly costs anything and in this litigious society, it's an absolute necessity. Great advice for your readers.

Feb 09, 2013 01:28 AM
Rob Renk
Center Street Lending - McKinney, TX
AE | Fast Fix/Flip Loans for Residential Investors

Excellent information on carrying insurance to protect yourself.  The policies aren't that much for the peace of mind that they provide.

Feb 09, 2013 03:19 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
Excellent advice. I am just reconsidering mine. Will be in touch for a quote.
Feb 09, 2013 03:53 AM
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Frank thanks for you post.  I think I could use one of these policies.  I'll look into it.

Feb 09, 2013 04:49 AM
M. Lynn Delatte
Developers Realty - Broadview Heights, OH

Thanks for the post. I will now look into getting more overage now.

Feb 09, 2013 09:41 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

Guess I'll be stopping by my insurance company FIRST thing Monday morning!! Thanks for the tip!!

Feb 09, 2013 10:08 AM
Rafi Footerman
Mid Jersey Inspections - Edison, NJ
Home Inspector, Mold Inspector, Radon and More!

I got one years ago and have had piece of mind every since.

Feb 09, 2013 12:12 PM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Timely post about protecting your assets against liability, yet most business owners fail to adequately protect their income with disability insurance and life insurance to protect their family from the sudden and unexpected loss of their income. While many agents have adequate liability protection, their most important asset generator is woefully under insured, don't you agree?

Feb 09, 2013 02:37 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Sheila, Thank you, I am glad you have one

Paula, you have an excellent point

Bob, That is great, Katherine does an awesome job. I am luck to have her.

Barbara, I am glad to hear you have one. you are right,they are inexpensive

Rob, I agree, Thanks for stopping by

Hella, Please let me know if we can help

Sharon, It's an easy process to add to your policy

Lynn, It only takes a few minutes to do & very cost effective

Travis, good for you, don't put it off

Rafi, That is great piece of mind

Kimo, Thank you for that comment. I completely agree

Feb 09, 2013 07:31 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I'm with you Frank on this one. I've always carried a ton of insurance on top of insurance, so to speak! It really is cheap insurance in the end to protect one's home, assets, etc.

Feb 09, 2013 11:00 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Thanks Nina for stopping by & commenting. you are doing the right thing by having the extra protection.

Feb 09, 2013 11:35 PM
Brenda Van Fossen
Dawson Ford Garbee & Co., Realtors, Lynchburg VA - Lynchburg, VA


Thanks for the reminder.  An insurance agent connected with our firm mentioned an umbrella policy at a sales meeting.  She said that it would only run about $100 a year.  I have been putting it off.  I won't any longer.  Good to know that I can use those funds to help pay a lawyer also.

Feb 10, 2013 05:09 AM
Sharon Sein
Sein Organizing Solutions & Home Staging - Feasterville Trevose, PA

Frank, this is such great advice. I didn't even know umbrella policies existed until I started my business. As a sole proprietor, I really need the extra coverage just in case. And it is very affordable, so why wouldn't you get the extra coverage? Great post!

Feb 10, 2013 06:11 AM
Rocky Rockhill
Scott & Quinn Real Estate - San Diego, CA

Thank you. I will be calling my insurance company tomorrow!


Feb 10, 2013 01:29 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Brenda, thank you for stopping by. It can always help having the extra protection

Sharon, As a sole proprietor, you want that extra coverage

Rocky, good for you. it's never too late to add the coverage

Feb 10, 2013 07:14 PM
Liz Lockhart
Riverbend Realty, Cape Girardeau, MO - Cape Girardeau, MO
GRI, Cape Girardeau Real Estate

Thanks for the food for thought. I need to talk to my insurance representative!

Feb 12, 2013 02:46 AM
Chris Marquez
Charleston HOME Properties ~ www.BuySellCHS.com - Sullivans Island, SC


Well written and well said.

We just did this in the past year.

You covered the topic in great detail without to many words.

In the insurance world that is hard to do...usually it the opposite.



Feb 21, 2013 11:19 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Liz, Thanks for stopping by & I hope you talk with someone. it is good to have the extra protection

Chris, we try to make it short & sweet, Insurance is usually something people think about when they need it.

Feb 21, 2013 09:46 PM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?