5 Tips for Saving Money on Umbrella Insurance

Umbrella insurance provides an extra layer of financial protection beyond your auto, home, or business liability coverage. It helps cover large lawsuits, medical expenses, and liability claims that exceed the limits of your standard insurance policies. However, many people assume that umbrella insurance is expensive. The good news is that there are ways to get strong protection without overpaying.

Here are five practical ways to save money on umbrella insurance while ensuring your assets are fully protected.

1. Bundle Your Umbrella Insurance with Other Policies

One of the easiest ways to lower the cost of umbrella insurance is by bundling it with other policies, such as home, auto, or business insurance. Many insurance companies offer multi-policy discounts, reducing your overall premium.

When you bundle policies, insurers see you as a low-risk client, which often leads to lower rates. Instead of purchasing umbrella insurance separately, consider combining it with your existing policies to take advantage of cost savings.

Need help bundling your policies? Bortec Insurance offers customized solutions to fit your needs.

Learn more about policy bundling from The Insurance Information Institute.

2. Increase Your Underlying Coverage Limits

Umbrella insurance only takes effect after your primary policies reach their coverage limit. By increasing the limits on your auto, homeowners, or business liability insurance, you may qualify for lower umbrella insurance rates.

For example, if your auto liability coverage is set at $250,000, raising it to $500,000 could reduce your umbrella insurance premium because there is less financial risk for the insurer.

Not sure how much liability coverage you need? Bortec Insurance can help you adjust your policies for better savings.

For more details on liability limits, check the National Association of Insurance Commissioners (NAIC).

3. Maintain a Strong Credit Score

Many insurers use credit scores as part of their pricing models. A higher credit score often leads to lower insurance premiums, including umbrella insurance.

To improve or maintain a strong credit score, follow these steps:

• Pay bills on time to avoid negative reports.
• Keep your credit utilization low to show financial stability.
• Review your credit report for errors and dispute inaccuracies.

A higher credit score tells insurers that you are financially responsible, which can help lower your insurance rates.

For expert credit score tips, visit Experian.

4. Reduce High-Risk Liabilities on Your Property

Certain high-risk factors can increase your umbrella insurance premium. These include:

• Owning a rental property
• Owning a boat, ATV, or high-performance vehicle
• Having a swimming pool, trampoline, or aggressive dog breeds

If you have any of these risk factors, you can reduce liability exposure by:

• Installing safety features (e.g., pool fences, security cameras, and alarms).
• Requiring renters to have their own insurance if you own a rental property.
• Following local safety regulations to prevent claims.

Making these small adjustments can lower your risk profile and potentially reduce your umbrella insurance premium.

Read more about liability risk factors from Forbes.

5. Shop Around and Work with an Independent Insurance Agency

Insurance rates vary between providers, so shopping around can help you find the best deal. Independent insurance agencies, like Bortec Insurance, work with multiple insurers to find the most competitive rates.

When comparing umbrella insurance quotes, consider:

• Coverage limits ($1 million, $2 million, etc.).
• Policy exclusions (what’s not covered).
• Deductibles and out-of-pocket costs.
• Available discounts (e.g., safe driving history, home security systems).

Check out unbiased insurance shopping tips from Consumer Reports.

Get Maximum Coverage Without Overpaying

Umbrella insurance is an affordable way to protect against large lawsuits and financial losses. By bundling policies, increasing coverage limits, maintaining good credit, reducing liability risks, and comparing quotes, you can save money while keeping your assets safe.

Looking for affordable umbrella insurance? Get a free quote from Bortec Insurance today.

Frequently Asked Questions (FAQ)

1. Is umbrella insurance only for wealthy individuals?
   No, umbrella insurance is for anyone who wants extra liability protection. It covers legal costs, medical bills, and property damage claims that exceed standard insurance limits. Even middle-income families and small business owners benefit from having an umbrella policy.
2. Does umbrella insurance cover business-related lawsuits?
   Standard personal umbrella insurance does not cover business liability. However, business owners can purchase commercial umbrella insurance to extend coverage beyond their general liability policy.

Need business liability protection? Contact Bortec Insurance for customized coverage.

3. Does umbrella insurance cover rental properties?
   Yes, landlords can use umbrella insurance to cover liability claims related to rental properties. This includes tenant injuries, property damage claims, or lawsuits from third parties. Some umbrella policies require the landlord to have a certain level of primary liability coverage.
4. Can umbrella insurance cover defamation or slander lawsuits?
   Yes, umbrella insurance often covers personal injury claims, including defamation, slander, and libel. If you are sued for making a statement that harms someone’s reputation, your umbrella policy can help cover legal defense costs.
5. Does umbrella insurance cover damages caused by my pet?
   Yes, if your pet injures someone or damages property, umbrella insurance can provide additional coverage beyond your homeowner’s policy. However, some insurers exclude certain dog breeds, so check your policy details.

Still have questions? Get expert guidance from Bortec Insurance.