Umbrella Insurance for your protection

[Cameron Moore]

I see a lot of questions regarding Umbrella Insurance and I would like to answer as many as I can in one post. 

Simply put, Umbrella Insurance supplements your base coverage. Most Home owners policies and Landlord policies carry either $300k or $500k in base liability. You should always request $500k because the premium difference is minimal (I'm talking less than $20/year typically). In the event of a lawsuit, this coverage will come into play for the fees and possible settlements. But without an umbrella policy, you will be coming out of pocket past that $500k. 

If purchasing in an LLC, I suggest you have a base General Liability policy. That will provide $2,000,000 of coverage (Typically) and has other sub coverages depending on the quote.
Keep in mind, your assets can be factored in and attacked in court and you could end up with a lien if you do not have endless cash to pay. In Texas, you can have up to $5 Million extra protection Umbrella coverage for less than $1K a year. In fact, a recent client of mine with 6 properties in his portfolio was given the below options from Underwriting. (Keep in mind these numbers do not include coverage for any automobile accidents, that would increase the cost by quite a bit in most cases but is very important as well.) 

$1,000,000 for $215/Annual Premium

$2,000,000 for $365/Annual Premium

$3,000,000 for $515/Annual Premium

$4,000,000 for $665/Annual Premium

$5,000,000 for $815/Annual Premium