New product alert: CFM Insurance now offers Personal Umbrella coverage to pair with your CFM home and auto policies! If you're even the slightest bit familiar with insurance (and we totally won't judge you if you aren't), you’ve likely heard the term and know it’s gotta' be important. But you still may be asking: What is Umbrella Insurance? While we may be new to the Umbrella Insurance game, we've got all your answers.

The short and sweet insurance-y definition? Personal Umbrella insurance is coverage that goes over and above the limits provided by your homeowners or auto policy. You can think of it as an extra layer of personal liability coverage for both. A lengthier, but relatable definition? Well, picture this:

It's a perfectly sunny day. You've planned your whole afternoon around outside activities to soak up all that glorious sun. But then, out of nowhere, you see a few dark clouds rolling in. You're a little concerned, but you watched the weather forecast that morning - like you do every day - and they only called for a 10% chance of a pop-up shower. So, clearly, that tiny window of an opportunity Mother Nature could actually put a damper on your outdoor plans didn't really scare you. Why would it?

Several minutes pass, and more unwelcome ominous clouds crowd the sky. By this point, you predict it very well could rain, sooner rather than later. But were you prepared for a downpour? What if high winds and hail follow? Sometimes, no matter how careful and cautious we are - we're simply not prepared for life's many unannounced "storms" and the problematic aftermath they create.

Wouldn't it be better in this scenario if you had grabbed your umbrella before you left the house that day to shield you from getting drenched in the rain, even if there was only a 10% chance it would happen? The thing is, potential risks are all around us and, many times, while completely unavoidable, can be mitigated by our proactive decisions to protect ourselves should we encounter them.

Since we've now reached the very valid conclusion that umbrellas are an essential traveling companion, let's break down how they are also just as helpful in terms of your insurance protection.

What Does A Personal Umbrella Policy Cover?

You've worked hard for the lifestyle you lead - your assets, home equity, retirement savings, and more are a result of that work. Therefore, they deserve all the added protection they can get, especially if they ever become at risk from legal liability claims. With a CFM Personal Umbrella policy, you can choose up to $1 million in added liability protection, safeguarding those valuable personal securities.

It's All In The Family: To be eligible for a Personal Umbrella policy from CFM, you must also have your home (or farm) and auto policies covered by CFM. We feel this requirement heightens the convenience factor so many customers long for when deciding where to place all of their property insurance policies. Keeping all of your policies in the CFM Family will make for a quick and efficient insurance buying process. 

Let's Talk Coverage: A Personal Umbrella policy from CFM covers several basic and additional exposures that aren't traditionally covered by a standard homeowners or auto policy. Take a look.

What's Typically Not Covered By A Personal Umbrella Policy?

Umbrella policies don't cover a policyholder's personal property - that protection is provided up to a certain amount by your homeowner's policy. Coverage on this type of policy is only extended when another party is injured or experiences damage to their possessions as a result of your actions. In addition to the exclusion of your property, Personal Umbrella policies won't typically cover business losses, intentional criminal acts, or contract (written or oral) disputes.

How Does A Personal Umbrella Policy Work?

When you've exhausted the coverage provided by your homeowners or auto policy, your personal umbrella policy - which is a stand-alone policy separate from your home and auto policies - kicks in. This beneficial - and extremely affordable - coverage helps you avoid paying high out-of-pocket costs if you're found liable on a large claim. Take a look at these claim examples to get a better idea of how this policy could come in handy:

Home Claim Scenario: While cooking, you leave your stove unattended, resulting in a fire. In addition to damaging your property, the fire also destroys much of your neighbor's property and injures them. As a result, you may have to pay for any repairs to your neighbor's dwelling on top of any injury claims that arise. After your homeowner's policy limits are exhausted, your Personal Umbrella coverage will kick in to cover the remaining costs of your accident and the resulting devastation.

Auto Claim Scenario: Your inexperienced teen driver slid through an intersection on icy roads and hit a woman making her way through the crosswalk. She was then hospitalized with multiple severe injuries. Her medical bills were substantial, and your auto policy limits were exhausted in settling her costs. Because you had a Personal Umbrella policy, the remaining balance of her medical bills - which resulted in hundreds of thousands of dollars - were paid in full.

Did you know? Umbrella insurance coverage also extends to other members of your household - or 'Named Insureds' as we refer to them on your policy - such as your spouse and children. That means if you face a claim scenario like the auto accident example above, where your child is at fault, your umbrella insurance policy can protect them.

Who Would Benefit Most From Having A Personal Umbrella Policy?

Umbrella insurance is beneficial to just about anyone because, as we all know, accidents that result in high costs can happen to anyone. And the fact that it's so affordable makes it even more appealing to the vast majority of people interested in a little extra protection. However, there are those with several specific lifestyle factors that could benefit more from having a Personal Umbrella policy.

Interested In Getting A CFM Personal Umbrella Policy?

Hopefully, we've covered all the bases about the newest addition to the CFM policy family. But if you still have questions, your trusted, local CFM Agent can answer them so you can decide whether having additional liability coverage makes sense for you. Oh, and did we mention how affordable this policy is? Depending on the level of liability coverage you desire, along with some other determining factors your CFM agent can walk you through, Personal Umbrella Insurance can be extremely inexpensive. Again, your agent can weigh the pros and cons of this insurance protection and its potential to ease your specific concerns for good.