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Murphy Insurance2026-05-05 15:38:482026-05-17 12:04:43Insurance Checklist for Owners of Vacation Rentals in New EnglandHave you considered Personal Umbrella Insurance?
You’ve worked hard to build your life. It’s important to protect you and your family’s present and future. Just turn on the television or read the newspaper, and you’ll hear about people suing each other.
None of us wants to imagine ourselves in such a situation, but one incident could cost you your future.
You don’t have to be a millionaire to be sued.
You host a party at your home, and a guest slips and falls. Even though you’re “friends,” the injuries they suffer put them out of work for over a year, and they end up suing you. It happens every day, and it could happen to you.
How Can You Protect Yourself?
Even if you’ve purchased substantial liability limits on your auto or home insurance, it may not be enough to adequately protect you. Juries often reach decisions resulting in awards of hundreds of thousands and millions of dollars. Don’t assume the adage that “you can’t get blood from a stone” is true. Courts can force the sale of your home and other assets, not to mention attach your future earnings.
Personal Umbrella Liability Insurance is a sure and cost-effective way to protect your lifestyle, family, and future. It’s an extra layer of protection over and above the coverage limits of your auto, home, or other policies. It’s also referred to as excess liability. It helps you cover lawsuits, settlements, and jury awards. Umbrella policies are available in increments of $1 million, ranging from $1 – $10 million. While the exact costs depend on your situation, the average premium for a $1,000,000 protection limit is approximately $250 a year, which is affordable considering the enhanced coverage.
Here is a helpful Risk Assessment Worksheet to show you your current risk situation. It is a valuable tool when discussing your coverage needs with one of our agents.
Learn more below about Personal Umbrella Liability Insurance from the following topics:
Eligibility, Premium & Discounts
To be eligible for personal umbrella insurance, your auto, home and other policies protecting you from liability must have protection limits at certain required amounts, which can vary between insurance companies. Also, there are other qualifications that must also be met.
You may assume that an umbrella policy is extremely expensive; however, it often costs less than you might think. An average umbrella policy with a $1 million coverage limit can cost less than $400 a year. Generalizing is difficult because there are many factors that impact the final cost, so you really should speak with us to get a quote customized for your specific situation. We do everything possible to make it simple, and the feeling of knowing deep-down that you have even better protection is invaluable.
In many cases you may receive a discount if your car, home or boat policy is insured by the same company. Your trusted associate always strives to find you the best combination of price and protection.
NOTE: This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information contact a Murphy Insurance Agency Associate.
How Does an Umbrella Insurance Policy Work?
If an accident occurs, the liability portion of your policy covering the incident (auto, home, or recreational vehicle) will be used first to cover any claims, and your umbrella policy will pay any excess claim costs. So, if you have an auto policy with a $250,000 liability limit and a personal umbrella policy with a $1,000,000 limit and are involved in an auto accident causing serious injury to another person, resulting in a jury award of $1,000,000, your auto policy would pay the first $250,000. Then, your umbrella policy would cover the remaining $750,000. Most insurance companies require a minimum level of liability coverage on your auto, home, or other primary liability policies before you are eligible to purchase umbrella policy protection.
How Much Protection Is Enough?
There is no exact formula for determining exactly how much coverage is right for you. Deciding how much coverage you “need” is a personal decision that you must make. None of us can predict the future or what might happen, but you can assess what you have at stake and what unique factors of your life may cause increased exposure to risk. Answering the following questions can help you determine what level of protection seems appropriate.
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- What is the value of your assets, i.e., your home, money in the bank, stocks, bonds, other assets, and available funds from 401(k) or retirement plans?
- What is the value of your future assets, such as future salary, inheritance, investment income, etc.?
- How much liability coverage do you have on your auto, home, or boat policies?
- If your job involves more significant exposure to risks, do you need your own protection if you are sued personally for a work-related incident?
- Do you participate in recreational activities that put you at greater risk?
- Do you have teenage drivers in your household?
A trusted Murphy Insurance professional can help you estimate your needs and provide a quote for your situation. Ultimately, you decide how much insurance is enough.
What Is and Is Not Covered Under an Umbrella Policy?
When purchasing any insurance protection, everyone wants to focus on what is covered. But knowing what’s not covered is equally important, so there are no surprises. A personal umbrella liability policy covers incidents unless they are specifically excluded in the terms of the umbrella policy. It covers some situations that are not covered by other policies. The following is a partial list of commonly covered and excluded situations.
What It Covers
Umbrella Insurance protects for:
- Excess liability claims above the liability limits of other policies covering bodily injury or property damage caused by you, a household family member, or hazards on your property for which you are legally liable.
- Some claims may be excluded by other liability policies, including libel, slander, or false arrest.
- Liability coverage for rental units you own, including wrongful eviction.
- Legal costs for defense of a covered loss, including lawyer fees and court costs.
What It Does Not Cover
Common coverage exclusions for Umbrella Insurance:
- Personal injury to you or a relative who lives in your home.
- Liability caused by intentional action of or that was expected by the insured.
- Personal injury claims covered under workers’ compensation or similar laws.
- Liability due to business operation or business property.
- Damages resulting from holding a position as a corporate officer, board of director, or government body if the corporation or organization is not-for-profit and you are not compensated.
- Damage to property damage you own or take care of.
- Liability assumed under any contract or agreement.
- Liability resulting from ownership, maintenance, use, loading, or unloading of boats and most recreational vehicles owned or chartered by the insured, with some exceptions if a primary insurance policy is carried on the vehicle.
- Liability resulting from ownership, maintenance, use, loading, or unloading of aircraft owned or chartered by the insured.
- Damages caused by environmental contamination unless accidental.
- Liability arising out of physical or mental abuse, sexual molestation, or corporal punishment.
- Liability caused directly or indirectly by war or warlike acts.
Personal Umbrella Insurance Companies
At Murphy Insurance, we collaborate with top-rated insurance companies to meticulously assess and compare options, striking the perfect balance between cost and coverage that aligns with your specific needs.
Read Our Personal Umbrella Insurance Blog Posts
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Murphy Insurance2026-05-05 15:38:482026-05-17 12:04:43Insurance Checklist for Owners of Vacation Rentals in New England
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Murphy Insurance2026-04-09 12:15:122026-04-21 09:54:49Why Umbrella Insurance Matters for Local Families in Bolton, MA