Should You Get a Safeco Umbrella Policy?
A million-dollar umbrella policy from Safeco could protect your assets from lawsuits and injuries that standard liability won’t cover. But is it worth it?
Written by James Ellaby
Reviewed by Kathleen Flear
Personal liability umbrella insurance from Safeco is a type of coverage that goes beyond the protections of a standard policy to protect you and your assets from liability claims that wouldn’t be completely covered otherwise.
Umbrella insurance isn’t necessarily right for everyone. It can be a good choice for people with a high net worth or parents of teenagers and young children who want to protect their financial security.
We’re here to tell you everything you need to know about a Safeco umbrella policy to help you decide if it’s worth adding to your
car insurance
or homeowner’s
policy. Compare insurance quotes from 50+ insurance companies with Jerry in under 45 seconds
Compare insurance quotes from 50+ insurance companies with Jerry in under 45 seconds
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat is an umbrella insurance policy?
Nobody likes being caught out in the rain without an umbrella, but does that same principle apply to umbrella insurance policies? There’s a chance that it could.
An umbrella insurance policy extends your
personal liability insurance
beyond its normal limits and can apply to car insurance, home insurance, and other types of policies your provider offers. You might also see it called a personal umbrella policy (PUP).Umbrella insurance covers what your regular
liability insurance
won’t. If the costs rise above what you’re paying for in coverage, you won’t be paying out of pocket for the rest of the costs. It also covers the costs of things that a standard liability policy usually doesn’t, like mental anguish or mental health issues related to an accident.The coverage from an umbrella policy starts at $1 million. It can go up in million-dollar increments as high as $5 million or even $10 million—a dramatic increase to the top liability limit of around $500,000. With an average cost of $150 to $300 a year, what difference could that make if you end up with a big liability bill?
How does umbrella insurance work with Safeco?
Safeco offers personal liability umbrella insurance, but this is only for policyholders who meet the required liability limits on underlying policies.
You only need your car insurance from Safecto to qualify for umbrella insurance. Other policies can be insured with other carriers.
Safeco requires customers to have at least $250,000 in liability insurance to qualify for an umbrella policy but encourages them to raise their liability coverage to at least $500,000 to lower the potential costs of the umbrella policy.
What does Safeco umbrella insurance cover?
Here are the areas that Safeco’s umbrella insurance policy would cover:
- Personal liability settlements
- Additional bodily injury liability limits
- Additional property damage liability limits
- Claims beyond liability limits for policies such as homeowners, watercraft, motorcycle, ATV, etc.
- Slander
- Libel
- Mental anguish
- Medical expenses and repair bills (for other people) beyond your regular coverage
But what kind of situation would this apply to? Let’s say you’re driving home from work in the rain and don’t stop in time when the traffic slows down in front of you. You would be
at fault in the car accident,
which turns out to be a massive pile-up. You’re responsible for the costs of all the people who were injured, including their medical bills and vehicle repairs. Let’s say your car insurance policy from Safeco includes high limits of
bodily injury liability
and property damage liability insurance
that can cover up to $500,000 per accident. However, in this case, the medical costs for the people in the car in front plus the repairs to several high-end cars involved add up to $750,000. Without an umbrella policy, you’ve got $250,000 to cover out-of-pocket. And then it turns out that one of the people in the car suffered a life-changing injury that has left them with additional mental anguish which you are liable for and would not be covered for by a standard policy.
In this situation, an umbrella policy from Safeco could be the difference between being able to cover the costs and the ruin of our financial future.
MORE: How different types of car accidents affect your insurance rates
What it won’t cover
An umbrella policy doesn’t cover absolutely everything. Here are some instances that would not be covered:
- Your injuries
- Damage to your own property
- Anything already covered by a legal contract
- Intentional harm or damage
- Business liability
If your friend slips and falls down the stairs during a party at your home, your umbrella policy would be able to help if their medical costs exceed your homeowners’ insurance liability limit. But if you pushed them down the stairs during an argument, none of your insurance would cover the costs, as this would be deemed intentional harm.
How much does Safeco umbrella insurance cost?
It’s not usually possible to give an exact cost for umbrella insurance because it’s determined by so many specific factors, including risk levels, but Safeco says that it starts from as little as a dollar a day.
Who can buy a personal umbrella policy from Safeco?
To buy a personal umbrella policy from Safeco, you need to have a Safeco car insurance policy, as well as policies for home,
renters
, or watercraft insurance that you want to have included—and you’ll need to have reached the maximum liability limit on that policy. Here are some reasons why you might benefit from an umbrella policy from Safeco:
- You have a high net worth
- You have a swimming pool, trampoline, swingset, or tree house on your property
- You host sleepovers or children’s parties at your home
- You own rental properties
- You own a dog
- You have children of any age that you are legally responsible for
- You own firearms
- You have retirement savings to protect
MORE: How to get cheap car insurance for young drivers
Is a Safeco personal liability umbrella policy worth it?
So, that’s everything you need to know about a Safeco umbrella policy, but is it worth it? Let’s break down the advantages and disadvantages of taking this extra step.
Pros
…it’s generally affordable. Costing as little as a dollar a day certainly sounds like a small price to pay to protect yourself from getting into dire financial straits after an accident, doesn’t it?
…it comes with higher limits. Car accidents can be very expensive, and paying steep
car accident costs
can be as life-changing as any injuries you might suffer from a crash. How would you pay off an extra $250,000 that wasn’t covered by insurance?…it protects you against things regular auto or home insurance won’t touch. If you’ve been accused of causing mental anguish or of slandering someone, an umbrella policy would cover the costs of defending yourself.
Cons
…it costs more. Paying as little as a dollar a day might sound like not much, but it’s still $365 a year from Safeco, plus the extra you’ll be paying to meet the liability limit to qualify. This can add up to a lot for something you hope you’d never need to use.
…not everyone can get it. Not everyone qualifies for an umbrella policy and certain risk factors in your profile could work against you.
…it won’t cover your injuries or property damage. Remember, this is all about liability. You won’t get any help from an umbrella insurance policy for your personal costs after a bad accident. Consider looking at coverage like
collision
or comprehensive insurance
instead.The bottom line
Paying extra for an enhanced coverage policy like this can seem over-cautious, but if your financial circumstances are such that you need to protect your financial future in the case of an accident, an umbrella policy can make a huge difference.
"Jerryis so helpful! It turns out that Safeco offers me the best plan for my price range. I’m thankful for the extra income I’m saving with a better auto insurance policy.” —Lou C.
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