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CONNECT, powered by American Family Insurance, has changed its name to American Family Insurance. No action is needed by you. Please see our FAQ for quick answers to common questions.
Will my insurance cover me entirely? It's a common question when accidents happen.
If damages exceed your homeowners insurance or car insurance limits, that's when umbrella insurance kicks in. Umbrella coverage is a cost-effective way to protect your assets when the unexpected happens.
Umbrella insurance is a cost-effective way to protect your assets (like your home or retirement savings) from lawsuits.
Myth: My home insurance and auto insurance provide all the coverage I need.
Fact: Your policies have limits. A common liability limit for an auto policy is $250,000 and home policy is $300,000. If you exceeded either, would you have enough to pay the difference out of your own pocket?
Myth: Umbrella insurance is only for wealthy people.
Fact: Umbrella insurance protects assets and investments from lawsuits benefitting almost everyone.
Myth: Umbrella insurance has limited benefits.
Fact: Umbrella insurance protects your assets and investments, covers defense costs in the case of a personal lawsuit, and provides personal injury protection for perceived libel, slander or defamation of character.
Why umbrella insurance? Because even with insurance coverage, after a lawsuit judgement, you could owe hundreds of thousands of dollars out of pocket.
3 umbrella insurance examples:
- Umbrella insurance at home: A group of children is playing on the swingset in your yard. One of them falls off the slide. The child’s injuries are serious and require long-term care. You are legally required to pay $1.2 million in damages. Your home insurance liability coverage will pay $300,000. Your umbrella insurance policy (if you have one) will pay the remaining $900,000.
- Umbrella insurance on the road: You are driving on the freeway and accidentally hit the back of a minivan carrying 6 passengers. Three people are seriously injured. You are legally required to pay $750,000. Your auto liability coverage could pay $250,000 per person and $500,000 per accident. Your umbrella policy (if you have one) will pay the remaining $250,000.
- Umbrella insurance in a rental: You live in a top-floor apartment. You turn on the water to take a bath but fall asleep. The bathtub floods several apartments below. That causes your neighbor’s electronics to short out and start a fire, which results in even more damage. You are legally required to pay $150,000 for the losses. The liability portion of your renters insurance will cover the first $100,000. Your umbrella policy (if you have one) will pay the remaining $50,000.
Our requirements for purchasing umbrella insurance:
- An auto insurance policy with liability limit of at least $250,000 per person and $500,000 per accident.
- Home insurance policy with liability coverage limit of at least $300,000 per incident.
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American Family Insurance is our brand name. Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company, Madison, WI. Property policies are underwritten by Homesite Indemnity Company, Homesite Insurance Company, Homesite Insurance Company of California, Homesite Insurance Company of Florida, Homesite Insurance Company of Georgia, Homesite Insurance Company of Illinois, Homesite Insurance Company of New York, Homesite Insurance Company of the Midwest or Homesite Lloyd's of Texas, Boston, MA. American Family Connect Insurance Agency, Inc., places policies with related and unrelated companies. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Each company has sole financial responsibility for its products. Products, pricing, discounts, benefits, and availability vary by state and may be subject to change. Exclusions apply.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.