3 minute readUmbrella
Umbrella insurance is extra liability coverage that sits above your home and auto policies. When a claim exceeds those limits, the umbrella pays the rest — typically in million-dollar increments — and it usually adds broader defense coverage and worldwide protection at a very low cost per dollar.
What you need to know
How it attaches
Your underlying policies must carry required minimum limits; the umbrella takes over above them.
What it covers
Bodily injury, property damage, and often personal injury claims like libel, slander, and false arrest.
What it does not cover
Your own injuries or property, business exposures on a personal policy, and intentional acts.
Common mistakes
- Assuming umbrella coverage is only for wealthy households.
- Buying an umbrella while leaving underlying limits below the carrier's requirement.
- Ignoring exposures like pools, dogs, teen drivers and rental property.
- Sizing the limit to current assets while ignoring future income.
- Assuming a personal umbrella covers business activities.
When to talk to an agent
Talk to an agent if you own a home, rent out property, have a teen driver, host often, sit on a board, or simply want your assets and wages protected against a large liability claim.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.