By: Katie Zurawka
An Umbrella is an additional liability coverage that extends beyond your home, auto and other eligible policies to help protect your assets in a lawsuit. Because a lawsuit requires a legal defense to determine negligence, defense costs are also an important consideration. The following real-life claim scenarios illustrate the value of this added coverage, even though they may seem unlikely.
Scenario: You or someone in your household causes an at-fault auto accident that results in significant bodily injury or property damage to another party. The damage exceeds the liability limits of the auto policy.
Scenario: While on vacation, you rent an e-bike and collide with another e-bike rider. A bodily injury lawsuit is filed against you exceeding the liability limit on your policy.
Scenario: While you are walking your dog, it becomes excited by two dogs in a neighbor’s yard and breaks free from its leash. Your dog knocks down the neighbor, causing broken bones that require surgery. A lawsuit seeks compensation for the injury, lost wages, rehabilitation, pain and
suffering, and reduced earning capacity.
With an umbrella: Coverage applies after the selected liability limit on the home or auto policy has been exhausted, helping prevent the client from paying excess damages out of pocket. These costs can total thousands of dollars—more than many people can cover with personal savings. An umbrella policy provides an added layer of liability protection for your financial assets and greater peace of mind.
Without an umbrella: The client is responsible for damages that exceed the underlying policy limits. Paying these costs may require selling assets, may lead to wage garnishment when sufficient assets are unavailable, and could put retirement savings at risk.
Value-added coverage can make a significant difference when a claim occurs. Because coverage varies by carrier, it is important to understand the available options and how they may help after a loss. Your Howard Hanna Insurance agent can explain these options and tailor your coverage to
your needs and expectations.
About Howard Hanna
Howard Hanna Real Estate Services proudly provides real estate, mortgage, title, and insurance services across 18 states. As the largest family-owned and -operated real estate brokerage in the United States, Howard Hanna operates more than 500 offices with 15,000 sales associates and staff. The company’s proprietary Hanna Success System helps its agents achieve 53% more business than agents at the top 1000 brokerages nationally. Learn more at www.HowardHanna.com.
Last modified: October 27, 2026