Arizona Umbrella Insurance

Experts break down extra liability insurance costs, coverages, companies, and more.

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All it takes is one lapse of judgement, one act of negligence, or one accident and you can find yourself faced with a liability lawsuit. Fortunately, most of the insurance products you carry right now cover against this risk. For Arizona resident with a lot to lose, umbrella insurance can provide added protection.

Independent agents can help you get customized quotes from some of the best personal umbrella insurance companies in Arizona. That way, you can be sure you are getting the extra coverage you want at the most competitive price. Contact an insurance agent near you to get started.

What Is Personal Umbrella Insurance and How Does It Work?

Personal umbrella insurance is a secondary policy that provides you with a large amount of extra liability coverage if you are responsible for someone else’s injuries, property damage, or financial losses and the costs exceed what your car, home, renters, or other primary insurance policy can cover.

These policies can give you a high amount of liability coverage at an affordable price, because your umbrella insurance will not kick in until the coverage from your primary policy has been exhausted. In many cases your primary coverage will be sufficient.

How Much Does Personal Liability Umbrella Insurance Cost in Arizona?

Personal umbrella insurance is very affordable. According to the Insurance Information Institute, most people can purchase $1 million in extra liability coverage for as little as $150 to $300 a year.

As you increase the amount of coverage you are buying, it becomes even more affordable. An additional $1 million in coverage will run you about $75 a year more, while every million after that will cost about $50.

This means that you can purchase a $5 million personal umbrella insurance policy for around $275 to $425 a year. That’s a very small price to pay for a very large amount of liability coverage.

What Does Personal Umbrella Insurance Cover?

Your personal umbrella insurance can cover your liability overages if the limits of your primary insurance policies are too low. You can use your policy to boost the liability coverage in your:

Read on to get more details about these types of coverage.

How Can Umbrella Insurance Help Vehicle Owners in Arizona?

Anyone who drives a vehicle has the potential to one day be sued in a liability lawsuit. Maybe you’re distracted by the radio, or maybe you’re overly tired while driving home from a long day at work and you aren’t paying enough attention to the road.

Whatever the reasons, if you cause a collision, you will be responsible for any property damage and injuries you may cause. In Arizona, your car insurance policy will have at least $25,000 per person/$50,000 per accident in bodily injury liability coverage and $15,000 in property damage liability coverage.

Even if you buy a policy with much more coverage than this, it may not be enough. If you cause an accident that includes serious injuries or fatalities, your financial obligations will almost certainly exceed the maximum liability coverage offered by your insurance provider. This is where umbrella insurance kicks in.

To qualify for umbrella coverage for your car, most insurance providers will require you to carry at least $250,000 per person and $500,000 per accident worth of bodily injury liability coverage in your primary auto insurance policy.

How Can Umbrella Insurance Help Homeowners and Renters in Arizona?

Whether you own or rent your home, you already have a measure of personal liability protection through your primary homeowners, renters, or condo insurance policy.

This insurance can protect you in a number of ways, including:

  • If your pet gets loose and bites someone.
  • If you or someone in your household accidentally cause someone else to experience an injury, property damage, or financial loss, whether while on your property or away from home.
  • If you are accused of libel or slander.

You never know when a personal liability lawsuit is going to become extremely expensive. This might happen if your actions or negligence can be blamed for excessive damage to your neighbor’s home or if a visitor drowns in your swimming pool.

To qualify for umbrella coverage for your home policy, most insurance providers will require you to carry at least $300,000 in liability coverage in your homeowners, renters, or condo insurance.


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How Else Can Personal Umbrella Insurance Help Arizona Residents?

Your umbrella insurance can also add to the liability protections offered by any of a number of other insurance policies you may hold.

RV insurance almost certainly needs umbrella coverage, because these large vehicles can cause excessive injuries and property damage if they are involved in a collision.

If you have any other policies like boat insurance, ATV insurance, or landlord insurance, umbrella insurance can help you be certain that you will have enough liability coverage if the unthinkable happens.

If you are a business owner, be aware that personal liability insurance does not boost the liability insurance in your business insurance policy. For this you will need business umbrella insurance, which can increase your product, premises, and some (but not all) other commercial liability coverages.

What Isn't Covered by Arizona Umbrella Insurance?

As with any insurance policy, umbrella insurance has some exclusions. It will not cover claims related to:

  • Professional liability lawsuits
  • Lawsuits related to property damage or injuries that were inflicted intentionally
  • Lawsuits related to property damage or injuries that occurred while committing a crime
  • Damage to your own property or property belonging to members of your household
  • Injuries sustained by you or someone in your household

It is always a good idea to read and understand all coverage exclusions before purchasing your policy so that you do not have any unwelcome surprises later.

How Much Personal Umbrella Insurance Do I Need?

The decision to buy extra liability insurance is a personal one, and only you can ultimately decide how much coverage you want to have.

It is important to remember that the more you own, the more you can lose if you end up on the wrong end of a liability lawsuit and your liability coverage limits are too low.

The first thing you will want to look at is your protected assets. In Arizona, judgement creditors cannot go after:

  • Employer-sponsored retirement plans
  • Tax-except retirement plans like traditional IRAs
  • The first $150,000 of home equity you have built up in your house

All of your other assets, however, are fair game. This means that if you own any particularly valuable property or have a lot squirreled away in a savings account, you could potentially lose it all if you lose a liability lawsuit and do not have enough insurance protection.

You may therefore want to consider having enough umbrella insurance to cover all your assets other than a portion of your home and your retirement accounts. For help determining how much umbrella insurance is enough, you may want to speak with an accountant, financial advisor, or estate lawyer.

Personal Excess Liability Insurance vs. Umbrella Insurance: What You Need to Know

Technically, personal umbrella insurance is excess liability coverage. However, when insurance companies refer to excess liability insurance and umbrella insurance, they are sometimes referring to two different kinds of policies, though the difference is subtle.

Excess liability insurance works in the same way as umbrella insurance, but it will only cover one specific policy. Therefore, if you have a car insurance policy and a home insurance policy and you buy excess liability insurance, it will only cover one or the other.

Umbrella insurance, on the other hand, is designed to provide you with extra liability coverage for all of your insurance policies that include personal liability protection.

How Can Independent Agents in Arizona Help You Find the Best Umbrella Insurance Policy?

The only way to be certain that you are getting your umbrella insurance at a great price is by doing some comparison shopping. Independent insurance agents can save you time and money by doing this on your behalf.

In addition to obtaining customized quotes from some of the best umbrella insurance companies in Arizona, these agents can offer guidance and advice, answer your insurance-related questions, and help you with any other coverage needs you may have.

It doesn’t cost anything to get information from one of these local professionals. Find an independent insurance agent near you to learn more.

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