What is Umbrella Insurance?

By Brad Davis, CIC (October 2, 2025)

When people in Myrtle Beach think about protecting their homes, cars, or even boats, they usually picture their standard insurance policies. But what happens if a serious accident causes damages or injuries that go well beyond those policy limits? That’s where umbrella insurance comes in.

Umbrella insurance is one of those coverages that many people have heard of but aren’t quite sure how it works. Let’s break it down and explain why it can be one of the most important pieces of your financial protection plan.

What is a Personal Umbrella Policy?

A personal umbrella policy (PUP) is extra liability coverage that sits on top of your home, auto, and sometimes other policies like boat, motorcycle, or golf cart insurance. Think of it as a financial safety net.

For example, let’s say you’re at fault in a car accident here in Horry County, and the other driver has serious injuries. Your auto liability policy might pay out up to $250,000 for bodily injury per person. But if the medical bills, lost wages, and legal costs end up at $800,000, where does that extra money come from?

Without an umbrella policy, it comes from your savings, retirement, and potentially even your home. With an umbrella policy, that extra $550,000 would be covered. Most umbrella policies start at $1 million in coverage, with options to go higher if needed.

For more about “What is an umbrella liability policy?” feel free to visit this article from III (Insurance Information Institute).

Who is Umbrella Insurance a Good Fit For?

The truth is, almost anyone can benefit from umbrella insurance — but here are some examples of people in Myrtle Beach and South Carolina who should give it serious consideration:

• Homeowners: If you own a home, especially a higher-value property near the beach, you have assets worth protecting.

• Drivers: Whether it’s daily commuting on Highway 501 or taking the family golf cart down to the beach, accidents happen.

• Boat Owners: Myrtle Beach is full of boaters and jet ski riders. Water accidents can create large liability claims.

• Families with young drivers: Teenage drivers often have less experience behind the wheel, which increases the risk of costly accidents.

• Anyone with savings or retirement accounts: If you’ve worked hard to build up financial security, an umbrella helps protect it from lawsuits and liability claims.

In other words, umbrella insurance isn’t just for wealthy families. It’s for anyone who wants peace of mind knowing they won’t lose everything they’ve built if something unexpected happens.

Why Your Agent Should Place All Policies Together

Here’s a key part that often gets overlooked: an umbrella policy should be written by the same agency that handles your home and auto insurance. It’s best practice for one agency to handle all (or as much as possible) of your personal insurance needs.

Why? Because the umbrella only works properly when the underlying policies (home, auto, boat, golf cart, etc.) meet certain requirements. If one policy is placed with a different agent or company, there’s a real risk of coverage gaps.

For example:

• Your umbrella might require that your auto insurance carry at least $250,000/$500,000 liability limits.

• If your car policy (written by another agent) only has $100,000/$300,000, your umbrella might not respond to a serious claim.

• Or if you buy a new boat and your umbrella agent doesn’t know about it, you may not have the right coverage lined up.

At Davis Insurance Associates, we do our best to make sure your home, auto, boat, golf cart, and any other toys are insured correctly underneath your umbrella. That way, if you ever need it, your umbrella should be in good position to pay as it’s supposed to.

How Much Does Umbrella Insurance Cost?

One of the best things about umbrella insurance is how affordable it usually is. For most South Carolina families, a $1 million umbrella policy often costs just a few hundred dollars per year. The peace of mind it provides far outweighs the small extra premium.

Why Umbrella Insurance Matters in Myrtle Beach

Living along the Grand Strand comes with unique risks. Busy tourist traffic, boating accidents on the Intracoastal Waterway, golf carts in neighborhoods, and even rental properties can all lead to liability claims. Umbrella insurance ensures you’re not one accident away from losing your financial security.

Final Thoughts

Umbrella insurance isn’t complicated, but it is incredibly valuable. It provides an extra layer of liability protection for your family, your assets, and your future. The most important step is making sure all your policies — home, auto, boat, golf cart, and umbrella — are coordinated by the same insurance agency so nothing slips through the cracks.

At Davis Insurance Associates, we help families in Myrtle Beach and across South Carolina put all the pieces together so their coverage works exactly how it should.

👉 If you’d like to learn more or get a quote on an umbrella policy, reach out to us today. (843) 213-0000