Why You Need Umbrella Insurance
A serious car accident involving injuries could result in a $500,000+ lawsuit. If your auto policy only covers $250,000, you're personally responsible for the rest — potentially your savings, home equity, and future wages. Umbrella insurance fills that gap for as little as $200/year.
What Umbrella Insurance Covers
- Excess liability above your home, auto, and boat policies
- Bodily injury liability from accidents you cause
- Property damage liability
- Personal liability — libel, slander, defamation
- Legal defense costs
- Worldwide coverage in most cases
Who Benefits Most from Umbrella Insurance
- Homeowners, especially those with pools or trampolines
- Anyone with significant assets to protect
- Parents of teen drivers
- People who frequently host guests
- Rental property owners
- High-income earners whose future wages could be garnished
How Much Does Umbrella Insurance Cost
- $1 million in coverage typically costs $150–$300/year
- $2 million in coverage adds roughly $75 more per year
- One of the best values in all of insurance
- Must have underlying home and auto policies to qualify
- Higher underlying limits may be required
Frequently Asked Questions
Do I really need umbrella insurance?
If you own a home, have savings or investments, or have a teen driver, umbrella insurance is one of the smartest purchases you can make. The cost is minimal relative to the protection.
How does umbrella insurance work with my other policies?
Umbrella insurance sits on top of your auto and home policies. Your existing policies respond first; when their limits run out, the umbrella policy takes over.
What is NOT covered by umbrella insurance?
Umbrella policies typically don't cover intentional acts, business-related liabilities, or damage to your own property. It's purely liability protection.