After a lifetime of saving, seniors often have substantial assets to protect — and umbrella insurance guards them against a costly lawsuit.
Why seniors should consider umbrella coverage
Many retirees have accumulated significant assets — home equity, savings, and retirement accounts — that exceed the liability limits on their home and auto policies. If you're found responsible for a serious car accident or an injury on your property, a judgment can reach beyond those limits and threaten the assets you depend on for retirement. Umbrella insurance extends your liability protection by $1 million or more, paying after your underlying policies are exhausted. Even on a fixed income, a lawsuit can target your savings and future income, making this affordable coverage valuable. Call 1-800-MEDIGAP at 1-800-633-4427 to discuss your needs.
How much it costs and how to set it up
According to the Insurance Information Institute, $1 million in umbrella coverage typically costs about $150–$300 per year, with each additional $1 million adding roughly $75–$100. Insurers require you to carry minimum liability limits on your underlying auto and home policies first — often $250,000–$300,000 on auto. A common guideline is to buy umbrella coverage at least equal to your net worth. Bundling with your current home and auto carrier usually earns a discount and simplifies claims. Comparing quotes ensures you get the right limit at a fair price for your situation.