Umbrella insurance is there to help protect you against any (figurative) storms that may start raining down on you. This oftentimes valuable coverage is a supplement to your existing insurance. So, what does umbrella insurance cover? Umbrella insurance, or “excess liability insurance,” provides supplemental liability coverage when your primary insurance liability just isn’t enough.

Let’s take a look at what umbrella insurance covers and who could benefit from purchasing an umbrella policy.

What does an umbrella insurance policy cover?

An umbrella insurance policy is all about liability. Liability refers to a situation where you are found at-fault for another party’s damages or injuries. Usually, this involves a lawsuit or settlement.

Liability coverage ia a part of both homeowners and auto insurance. If you have either homeowners or auto, you can purchase umbrella liability to increase your limits for one or both. 

For example, you’re in a car accident. You are found at-fault. Your auto insurance liability limit is $100,000, and the other party’s damages are $500,000. Without umbrella insurance, you would be responsible to pay the remaining $400,000 out of pocket. With umbrella insurance, though, the umbrella would step in to cover those costs above your auto limits. Umbrella insurance would cover the other party’s medical treatment, property damage, and funeral costs. It will also help you cover the legal defense costs if you are sued for those damages.

Umbrella insurance also covers lawsuits involving slander, libel, and defamation of character. It can also help cover tenant’s injuries or property damage if you’re a landlord. Basically, umbrella insurance covers most incidents where you could do some sort of damage to another party.

Some instances where an umbrella insurance policy can step in:

  • When auto or home liability coverage is exhausted
  • When traveling the globe (liability coverage wherever you are)
  • When you have increased liability, like attractive nuisances or owning a dog
  • When volunteering or serving on board of a nonprofit
  • When you’re a landlord or renting out land
  • When coaching a sports team
  • When participating in sports where you could injure others
  • When regularly reviewing products or businesses

Read about these 8 common liability claims that require umbrella coverage.

What is not covered by a personal umbrella insurance policy?

Umbrella liability insurance does not cover any of your own costs in the case of an incident. So, it won’t pay for any of your own injuries or damage to your personal belongings, no matter who is at fault.

In the example of the car accident above, the $500,000 goes to the other party. Any injuries or damage you personally incur would not be covered under your umbrella insurance. Your health insurance and auto collision coverage would have to step in to help cover your own costs.

Umbrella insurance also typically doesn’t cover any business liability, criminal or intentional acts, or damage caused using recreational vehicles. Some insurers may also have specific exclusions for umbrella coverage.  

Wondering what is and isn’t covered by umbrella insurance? Give one of our expert insurance advisors a call at (844) 824-2885 to learn more.

What are the limits of umbrella insurance?

Umbrella insurance is typically sold in million-dollar increments. The minimum is $1 million in coverage, and it can range up to $5 or $10 million. These limits are significant, and they’re usually much higher than you’d find with standard home or auto insurance. For a low cost, you get a wide net of coverage to help protect your assets.

How much umbrella insurance you need depends on your net worth, including savings, income, and assets. If someone sued you for everything you owned, you’d want enough umbrella coverage to protect you.

A licensed insurance agent can help walk you through which assets an umbrella policy would help cover to determine how much coverage you require. Give one of our insurance advisors a call today at (844) 824-2885 to discuss your needs.

What are the benefits of a personal umbrella insurance policy?

  • Coverage limits are high and provide a decent cushion against lawsuits
  • Protects against libel, slander, and other indefinite liability cases
  • Coverage is usually global
  • May cover rental items and other belongings that don’t have insurance
  • Inexpensive, especially for the coverage you’re getting

Umbrella insurance offers a lot of protection for a low cost. With about $1 million in coverage, you’ll pay about $150 to $300 a year, according to the Insurance Information Institute. In our world of liability and litigation, a few hundred dollars can be well worth the peace of mind.

Do I need a personal umbrella insurance policy?

Most people could benefit from umbrella insurance. If your home/auto insurance liability limits don’t cover all of your assets or you have increased liability in your everyday life, umbrella insurance a good solution you should discuss with your insurance agent.

Start comparing umbrella insurance quotes today. Give one of our insurance advisors a call at (844) 824-2885 to find the right policy to help protect you, your family, and your assets, no matter what may try to rain on your parade.


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InsuraMatch is a national independent insurance agency that works with leading national and regional insurers to help our customers find the right insurance. Offering a wide range of property and casualty insurance products, our expert insurance advisors will take the time to learn about your needs and can help you find auto, home, renters, toy and umbrella insurance. Give us a call today to find your match!