What is Umbrella Insurance?

Do you know what umbrella insurance covers?

Lady with black umbrella on road with green trees behind her

Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your existing policies, such as home, auto, or boat insurance. It's designed to protect you from major claims and lawsuits, offering an extra layer of security for your assets and financial future.

Key Features of Umbrella Insurance:

1. Additional Liability Coverage:

Umbrella insurance kicks in when the liability limits of your other policies are exhausted. For example, if you’re sued for $1.5 million but your auto insurance only covers up to $500,000, your umbrella policy could cover the remaining $1 million.

2. Coverage for Various Situations:

Umbrella insurance typically covers a wide range of incidents, including:

Bodily injuries (e.g., accidents on your property or caused by you)

Property damage (e.g., damage caused by your actions or negligence)

Personal liability situations (e.g., defamation, libel, slander)

Legal defense costs (even if the lawsuit is groundless)

3. Broader Coverage:

In addition to providing higher coverage limits, umbrella insurance often covers claims that may not be included in your primary insurance policies, such as false arrest, invasion of privacy, or certain lawsuits involving slander or defamation.

4. Global Coverage:

Many umbrella policies offer worldwide coverage, protecting you from incidents that might occur while you’re traveling abroad.

Who Needs Umbrella Insurance?

Individuals with Significant Assets:

If you have substantial savings, investments, or property, umbrella insurance helps protect these assets from being seized or lost due to a large liability claim.

Homeowners and Vehicle Owners:

Homeowners and vehicle owners who might face higher risks of liability due to accidents or injuries occurring on their property or involving their vehicles can benefit from the additional protection.

Landlords:

If you own rental properties, umbrella insurance can protect you from liability claims related to tenant injuries or property damage.

People at Risk of Lawsuits:

Those with a public presence, business owners, or individuals who engage in activities that increase their risk of being sued might find umbrella insurance particularly useful.

How Umbrella Insurance Works:

Supplementary to Existing Policies:

Umbrella insurance is not a standalone policy; it supplements the liability coverage in your existing insurance policies. It only activates after the underlying policy’s limit has been reached.

Affordability:

Umbrella insurance is generally affordable compared to the amount of coverage it provides, often costing a few hundred dollars per year for $1 million in coverage.

Policy Limits:

Umbrella policies typically start at $1 million in coverage and can go much higher, depending on your needs.

Examples of When Umbrella Insurance Applies:

1. Auto Accident:

You cause a car accident that results in severe injuries to another driver. The medical costs and legal fees exceed your auto insurance liability limits. Umbrella insurance covers the excess amount.

2. Property Accident:

A guest slips and falls at your home, resulting in a significant injury. If the medical and legal costs exceed your homeowners insurance coverage, your umbrella policy would cover the remainder.

3. Personal Injury Lawsuit:

You’re sued for defamation after making a public statement that someone claims damaged their reputation. Umbrella insurance can cover legal defense costs and any settlement or judgment.

Importance of Umbrella Insurance:

Umbrella insurance is crucial for protecting your financial future. Without it, a large lawsuit could exhaust your primary insurance coverage and put your personal assets at risk. It provides peace of mind by ensuring that you’re covered in case of unexpected, high-cost liability claims.

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What is Gap Insurance?

By Justin Sonon • September 10, 2025

Gap Insurance: Dealer Add-On vs. Auto Insurance Policy — Which Is the Smarter Choice? Buying a new car is exciting, but it also comes with financial risks. The moment you drive off the lot, your vehicle starts to depreciate in value. If your car is ever totaled or stolen, your standard auto insurance typically pays out the actual cash value, not the balance left on your loan or lease. That’s where Gap Insurance comes in. Short for Guaranteed Asset Protection, it covers the “gap” between what your vehicle is worth and what you still owe your lender. Why You’ll Hear About Gap Insurance at the Dealership When you’re finalizing your purchase, the finance manager often offers Gap Insurance as an add-on. Convenience : You can roll it right into your financing paperwork. Cost : This convenience comes at a price. Dealers typically charge $400– $900 as a one-time fee, and because it’s financed, you’ll also pay interest on it. Commitment : Once it’s bundled into your loan, you’re locked into that cost even if your balance drops faster than expected. For example: if you buy a $30,000 SUV and total it a year later when it’s worth only $24,000, but you still owe $28,000, the dealer’s Gap Insurance would cover the $4,000 difference. Useful—but not always cost-effective. Gap Insurance Through Your Auto Insurance Policy What many car buyers don’t realize is that they can add Gap Insurance directly to their auto insurance policy. Lower Cost : Most carriers charge just $20–$40 per year for the same protection. Flexibility : You can add or remove the coverage as your loan balance changes. Same Protection : It covers the same difference between your loan and your vehicle’s actual cash value. In the SUV example above, adding Gap Insurance through your policy would provide the same $4,000 protection—but at a fraction of the cost. Which Option Is Best? If you like convenience and don’t mind paying more, the dealership option works. If you want long-term savings, adding Gap Insurance to your auto policy is almost always the smarter financial choice. At Sonon Insurance , you can explore whether adding Gap Insurance to your auto policy makes more sense for your wallet. Because protecting your vehicle, and your finances, shouldn’t cost more than it has to.

What Is Cancel For Any Reason Travel Insurance Coverage?

By Justin Sonon • August 26, 2025

Why “Cancel for Any Reason” Travel Insurance Might Be the Best Thing Since Rolling Suitcases Picture this: you’ve been dreaming about your big trip. Tickets booked, bags packed, playlist ready. Then life happens, your cat decides to swallow a Lego, your boss suddenly “remembers” a big project, or you realize that a trip to a tropical island during monsoon season wasn’t your brightest idea. Normally, this is when you’d be stuck with the sad sound of money swirling down the drain. But if you’ve got travel insurance with Cancel for Any Reason (CFAR) coverage , you can laugh in the face of chaos (well, at least chuckle a little). The Perks of CFAR Coverage—With a Side of Humor 1. You Don’t Need a Good Excuse Traditional insurance : “Sorry, that doesn’t count unless your appendix explodes mid-flight.” CFAR coverage: “You woke up and decided you’d rather binge-watch Netflix in sweatpants than fly across the ocean? Cool—we’ve got you covered.” 2. You’re Protected From Family Shenanigans Maybe your cousin suddenly schedules their wedding the same week as your dream cruise. With CFAR, you can cancel the trip and still show up awkwardly holding the world’s most boring salad bowl from their registry. 3. Weather Can’t Ruin Your Parade Who among us hasn’t booked a beach vacation only to arrive during torrential rain? With CFAR, you can check the forecast a few days before and bail, saving yourself from 7 days of Monopoly in a damp hotel room. 4. Peace of Mind for the Overthinker For those who like to plan Plan A, B, and C… and a backup Plan D (just in case aliens land), CFAR is like a security blanket. You don’t have to justify your panic. Cancel. Reschedule. Repeat. 5. Because Sometimes, You Just Don’t Feel Like It Life’s unpredictable. Maybe you’re not sick, maybe no one died, maybe nothing dramatic happened…you just don’t want to go anymore. CFAR says, “That’s enough reason for us.” The Fine Print (Without the Boring Lecture) Most CFAR plans will reimburse up to 75% of your prepaid, non-refundable trip costs—as long as you cancel within the allowed timeframe (usually 48 hours before departure). But hey, that’s a whole lot better than the 0% refund you’d otherwise get for your spur-of-the-moment decision to stay home with your dog. Final Boarding Call Travel is supposed to be fun. Worrying about “what if I need to cancel?” isn’t. That’s why Sonon Insurance recommends adding CFAR coverage to your travel insurance, so whether it’s a real emergency or just an “I’d rather not,” you won’t lose everything you invested in your adventure. Because at the end of the day, sometimes the best trip… is the one you didn’t take.