Umbrella Insurance — What It Covers & What It Costs
Extra liability coverage that kicks in when your auto or home policy limits are exceeded.
Get Your Free Quote$150–$400/yr
Average Cost
4
Key Benefits
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Related Coverages
Anyone with assets to protect — homeowners
Best For
Understanding Umbrella Insurance
Umbrella insurance provides an extra layer of liability protection beyond the limits of your auto, home, or other underlying insurance policies. It kicks in when a claim exceeds your standard policy limits, protecting your savings, home equity, investments, and future earnings from a catastrophic lawsuit.
Most umbrella policies start at $1 million in coverage and are available in $1 million increments. Despite the high coverage amounts, umbrella insurance is surprisingly affordable — typically $150–$400 per year for $1 million in coverage — because it only pays after your underlying policies are exhausted.
Umbrella coverage is broader than standard liability insurance. In addition to covering excess auto and home liability claims, it can protect against claims like defamation, slander, libel, and invasion of privacy that may not be covered by your other policies. Anyone with assets to protect, especially homeowners and drivers with newer vehicles, should consider umbrella coverage.
Key Benefits
- Provides $1M+ in extra liability protection
- Covers auto, home, and personal liability in one policy
- Protects assets like savings, investments, and home equity
- Covers claims not included in standard policies (defamation, etc.)
Limitations to Know
- Requires underlying auto and home policies at certain limits
- Does not cover your own injuries or property damage
- Does not cover intentional acts or business liability
- Must maintain underlying policy limits to keep umbrella active
Frequently Asked Questions
What is umbrella insurance?
Umbrella insurance provides an extra layer of liability protection beyond the limits of your auto, home, or other underlying insurance policies. It kicks in when a claim exceeds your standard policy limits, protecting your savings, home equity, investments, and future earnings from a catastrophic lawsuit.
How much does umbrella insurance cost?
Umbrella Insurance typically costs $150–$400/yr. Your actual rate depends on factors like your driving record, location, vehicle, age, and credit score. Comparing quotes from multiple carriers is the best way to find the lowest rate.
Do I need umbrella insurance?
Anyone with assets to protect — homeowners, high earners, and drivers with newer vehicles. Provides $1M+ in extra liability protection. Consider your vehicle's value, your financial situation, and whether your lender or state requires this coverage.
How does umbrella insurance work?
Most umbrella policies start at $1 million in coverage and are available in $1 million increments. Despite the high coverage amounts, umbrella insurance is surprisingly affordable — typically $150–$400 per year for $1 million in coverage — because it only pays after your underlying policies are exhausted.
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