Personal Umbrella Insurance
Umbrella insurance provides extra liability coverage that kicks in when the limits of your underlying policies, such as home, auto, or landlord, are exhausted. It also helps protect your assets and future income from large claims or lawsuits.
What does personal umbrella insurance cover?
Umbrella insurance covers bodily injury liability, property damage liability, legal defense costs, and certain personal liability claims. It activates after the limits of your home, auto, or other policies are exhausted.
How much coverage does an umbrella policy provide?
Most policies start at $1 million in coverage and can be increased in $1 million increments. This is in addition to the limits on your base policies.
What types of policies can an umbrella extend over?
An umbrella typically extends over auto, home, landlord, rental, and boat policies. It also can extend over some commercial liability policies, if they are properly structured.
Can an umbrella cover me for things not included in my home or auto policy?
Yes. Umbrella insurance may cover certain personal injury claims like libel, slander, or false imprisonment that aren’t included in standard homeowners’ or auto policies.
Do I need to maintain certain coverage limits on my existing policies to qualify?
Yes. Most umbrella policies require you to maintain minimum liability limits on your underlying policies.
For example: $250,000/$500,000 for auto liability
$300,000 for homeowners’ liability
How much does personal umbrella coverage typically cost?
Premiums vary, but a typical $1 million policy costs between $150-$300 per year. Additional millions add incrementally.