Umbrella Insurance
Extra personal liability coverage that goes above and beyond your homeowners, auto, or watercraft policies—protecting you from large claims and lawsuits that could threaten your savings.
Think of umbrella insurance as a safety net for your safety nets. Your homeowners policy might cover $300,000 in liability, but if someone gets seriously hurt on your property and the judgment is $800,000, you'd be on the hook for the difference. An umbrella policy adds $1-5 million of extra coverage on top of what you already have.
This kind of protection matters most if you've built up meaningful assets—investment accounts, savings, real estate, rental properties. Without it, a single lawsuit could put all of that at risk.
The price is surprisingly low: typically $150-$400 per year for $1 million in coverage. It's affordable because umbrella policies only kick in after your other insurance limits are exhausted. They cover things like serious car accidents where damages blow past your auto policy limits, major injuries on your property, and even defamation or libel claims.
If you're tracking a growing net worth in Clarity, umbrella insurance is one of the simplest ways to make sure a single bad event doesn't undo years of financial progress.
Frequently Asked Questions
▸How much umbrella insurance do I need?
A common guideline is to carry umbrella coverage equal to your net worth. If your total assets (home equity, investments, savings) total $2 million, a $2 million umbrella policy helps ensure a lawsuit can't wipe out your wealth.
▸What does umbrella insurance NOT cover?
Umbrella policies typically exclude damage to your own property, intentional acts, business-related liabilities, and contractual obligations. They're strictly for personal liability claims made against you by others.
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