Do Retirees Need an Umbrella Insurance Policy?

Umbrella insurance serves as supplemental liability coverage that activates when your standard policies reach their limits. Retirees often find this coverage valuable, especially if they have accumulated substantial assets and face unique risk factors. A serious auto accident, injury on your property or defamation lawsuit could quickly wipe out retirement savings without enough coverage. That is why it is critical to analyze what insurance you need before deciding on an umbrella policy.

A financial advisor can help you determine what coverage is suitable for your needs so you are protected for the long term.

Umbrella insurance provides additional coverage after after your standard insurance policies reach their coverage limits. Think of it as a safety net catching financial risks that might otherwise fall through the cracks of your regular insurance coverage.

When a claim exceeds the liability limits of your auto, home or boat insurance, your umbrella policy steps in to cover the remaining costs, up to your policy limit. Umbrella insurance extends beyond standard policies to cover major claims and lawsuits. It typically includes protection against bodily injury liability, property damage liability and personal liability situations like defamation or slander.

Before purchasing umbrella insurance, insurers usually require you to have certain minimum coverage amounts for your underlying policies.