Umbrella Insurance
An extra million dollars of protection for about a dollar a day.
What is umbrella insurance?
Your auto and homeowners policies include liability coverage, but those limits cap out — often at $300,000 or $500,000. A serious at-fault car accident, a guest's severe injury, or a dog-bite lawsuit can easily produce judgments beyond that. Everything above your policy limits comes from you: savings, investments, home equity, and even future wages can be garnished.
An umbrella policy adds $1 million or more in liability protection above your underlying policies, and it's remarkably inexpensive — typically $150–$400 per year for the first million. It also covers some claims your base policies don't, like libel, slander, and false-arrest claims. If you have assets to protect or income worth defending, an umbrella is among the highest-value coverage decisions you can make.
What it covers
- Liability judgments and settlements above your auto, home, or boat policy limits
- Legal defense costs — often paid in addition to the policy limit
- Personal injury claims: libel, slander, defamation, false arrest, invasion of privacy
- Liability from incidents worldwide, not just at home
- Claims against household members, including teen drivers
What it doesn't cover
- Your own injuries or property damage (that's what health, auto, and home coverage are for)
- Business liability — that requires commercial coverage
- Intentional or criminal acts
- Contracts you've agreed to or professional services you provide
Coverage components explained
1Excess Liability
The core function: when a covered claim exhausts your auto or home liability limit, the umbrella pays the next $1M–$5M+. Without it, the gap between your policy limit and a judgment is your personal responsibility.
2Broader Coverage (Drop-Down)
Umbrellas cover certain claims your underlying policies exclude — like personal injury offenses (libel, slander) — subject to a self-insured retention rather than an underlying limit.
3Defense Costs
Lawsuits are expensive to defend even when you win. Umbrella policies pay attorney fees and court costs for covered claims, typically in addition to the liability limit.
4Worldwide Territory
Coverage follows you globally — an accident while driving a rental car abroad or an incident on vacation is covered the same as one at home.
When you need umbrella coverage
- Your net worth (home equity + savings + investments) exceeds your auto/home liability limits
- You have teen drivers — statistically your highest liability exposure
- You own a pool, trampoline, boat, dog, or rental property
- You host guests frequently or volunteer on boards
- You have a high income — future wages can be garnished even if current assets are modest
Frequently asked questions
How much umbrella coverage should I buy?
A common starting point is enough to cover your net worth, rounded up to the next million. High earners should also consider future income, which judgments can reach. Each additional million typically costs less than the first — going from $1M to $2M often adds only $75–$100 a year.
What does an umbrella policy require of my other policies?
Carriers require minimum underlying liability limits — commonly 250/500 on auto and $300,000 on home. We coordinate all three policies so there's no gap between where your base coverage ends and your umbrella begins.
Is umbrella insurance only for wealthy people?
No. Anyone with home equity, retirement savings, or a solid income has something a judgment can take. At roughly $150–$400 a year for $1 million in protection, the cost-to-protection ratio is the best in personal insurance.
Does an umbrella cover my rental property?
It can — most carriers will extend umbrella coverage over landlord (dwelling fire) policies for one to several rental units. Tell us about every property you own so we can structure it correctly.
Let's find the right umbrella coverage for you
Answer a few questions and a licensed advisor will compare quotes across our carrier lineup — usually back to you within one business day.