Auto insurance
Liability, physical damage and the coverages that matter after a collision, for the vehicles your household drives.
Auto insurance- Home
- Personal insurance
- Personal umbrella
Umbrella
Personal umbrella insurance
An extra layer of liability, usually $1M to $5M, that sits above your auto, home and other policies for the claim that exceeds them.
Who needs it
Who this is for
If a judgment could exceed your auto or home liability limit, and most serious ones can, an umbrella is the least expensive way to cover the difference.
- Homeowners with equity and savings
- Households with young or inexperienced drivers
- Owners of pools, trampolines, boats, ATVs or recreational vehicles
- Landlords of one or more rental units
- Professionals and business owners whose earnings would be reachable in a judgment
- Volunteers serving on nonprofit boards
What it covers
Coverage parts, and what to watch on each
Summaries only. The policy wording governs, and every carrier's form is different.
| Coverage | What it does | What to watch |
|---|---|---|
| Excess liability | Pays above the underlying auto, home, boat or rental policy limit. | The underlying limits must be maintained. Dropping them creates a gap you pay yourself. |
| Defense costs | Legal defense for covered claims, often in addition to the limit. | Confirm whether defense is inside or outside. |
| Broader claims | Some claims the underlying policies exclude, such as certain personal injury claims (libel, slander, false arrest). | A self-insured retention, often $250 to $1,000, applies when no underlying policy responds. |
| Worldwide coverage | Most umbrellas follow you outside the country. | Rental cars abroad may be excluded. Ask before you travel. |
| Uninsured and underinsured motorist | Available as an add-on on many umbrellas. | Worth considering for households that drive a lot. |
| Limits | $1M increments, typically up to $5M; higher limits through specialty carriers. | Price per million falls as the limit rises. The second million usually costs less than the first. |
The hard part
What it does not cover
- Business liability (commercial umbrella or business policies)
- Intentional acts and criminal conduct
- Contractual liability, in most cases
- Vehicles, boats or properties not listed on the underlying policies
- Professional services
An umbrella is only as good as the policies underneath it. We check the underlying limits at every renewal.
How to get it
From first call to bound coverage
- 01Gather the underlying policiesAuto, home, boat, rental and anything else with liability.
- 02Meet the minimumsRaise underlying limits where the umbrella requires it.
- 03Choose the limitAssets plus several years of earnings is a reasonable starting point.
- 04List every exposureVehicles, properties, watercraft, drivers and board seats, so nothing is excluded by omission.
Questions
Common questions
How much umbrella coverage do I need?
Enough that a serious judgment does not reach your savings, home equity or future wages. $1M is the usual starting point; households with more assets or more drivers often carry $2M to $5M.
What underlying limits are required?
Commonly 250/500/100 on auto and $300,000 on home, though it varies by carrier. We align them when we place the umbrella.
Is it expensive?
Relative to the limit, no. The first $1M is often a few hundred dollars a year, and additional millions cost less each. Price depends on drivers, vehicles and properties.
Does it cover my rental property?
If the rental is listed and carries its own underlying liability, yes. Unlisted properties are a common gap.
I am on a nonprofit board. Does the umbrella cover me?
Some umbrellas include limited nonprofit directors and officers coverage; many do not. Ask, and check whether the organization carries its own D&O policy.
Related
Often placed alongside
Home, condo and renters
The house, the unit or the apartment, what is in it, your liability as a resident, and somewhere to live while repairs are made.
Home, condo and rentersPersonal insurance
Auto, home, condo, renters and umbrella, reviewed together so the limits line up.
Personal insuranceSend us your declarations pages.
We compare them line by line and tell you what we would change, if anything.