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Dan Frankel

How Much Umbrella Coverage Is Enough?

Updated: Dec 5

There are both subjective and objective means to evaluating the need for a personal umbrella policy, aka “Excess Liability Insurance.”


Diving board for a backyard pool


Subjectively speaking, can you sleep at night? Whether it is your kids behind the wheel, a pool in your backyard, or even a new dog in the household, it is important to feel financially secure. An umbrella is designed to protect your income, assets, lifestyle and legacy from the potentially devastating impact of a bodily injury claim. You can add trampolines and even an icy driveway to the list of concerns.


Objectively, if someone is injured, will they think it was your fault? If so, will that injury warrant a claim against you? If there is a claim, how much will be enough to resolve it? These are critical variables to consider and we advise our clients to look at Obvious Assets. For example, the Obvious Assets of a career professional living in a multi-million dollar home and driving a new Mercedes Benz look quite different from those of a 22 year old kid working odd jobs, living in an apartment, and driving an old car.


If someone is injured and an attorney is involved, negotiating with an insurance company over millions of dollars of coverage may be easier than litigating, involving the courts, a judge and jury. An umbrella policy properly correlated to Obvious Assets may be the difference maker between a settlement with the insurance company and a long legal battle that puts assets—and your lifestyle—at risk.


Ready to learn more?

Acacia Insurance has been helping to make the unexpected uneventful since 1988, and we look forward to working with you. Please contact us with questions and for additional information.




The insurance policy, not this Web site, forms the contract between the insured and the insurance company. The policy may contain limits, exclusions, and limitations that are not detailed in this Web site. Coverages may differ by state.

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