We'll Help You Find the Best Umbrella Insurance in Minutes

It should be no surprise how important it is to have your home, car, or even your business protected with the right insurance. But sometimes your risks outweigh the coverage you have. When that's the case, it's important to consider umbrella insurance to tack on an extra layer of liability protection in case of an accident. One unexpected accident could be all it takes to surpass your current liability and leave all the costs remaining on your plate.

An independent insurance agent can help you get set up with all the umbrella coverage you need. They’ll help you anticipate your legal risks ahead of time and get you equipped with the right protection to leave you feeling secure. 

What Is Umbrella Insurance?

Umbrella insurance, also called excess liability coverage, is a separate insurance policy that acts as a liability “umbrella” that extends over an underlying insurance policy, like your business, auto, home, motorcycle, and boat policies. It’s a liability-only policy, meaning there is no physical damage coverage for anything. It simply extends your underlying policy's liability limits in the event of a large claim.

Most insurance companies offer umbrellas in million-dollar increments, starting at $1 million and ending at $5 million, though some offer a lower limit, like $500,000 or even a higher limit, over $5 million. When you speak to your independent agent, they'll be able to guide you to what's best for you, and handle all the heavy work to find it for you.

How Does Umbrella Insurance Work?

Umbrella insurance covers costs of lawsuits, settlements, and legal defense, as long as the reason for the lawsuit is covered by your policy. However, umbrella insurance can even sometimes cover certain types of lawsuits that aren't covered by your homeowners, business, or auto insurance.

Here's a breakdown of umbrella coverage on top of an auto insurance policy:

So, if you had an auto insurance policy that provided $300,000 in liability coverage and then added a $1 million umbrella policy, you'd have increased your liability protection all the way up to $1.3 million total. The good news is, umbrella policies tend to be highly affordable. Especially considering the generous amount of added protection they offer. 

What Does Umbrella Insurance Cover?


      
   
    
 
    
 
   
    
   
   
     
  
     
 
 


Umbrella insurance usually covers:	Umbrella insurance usually doesn’t cover:
Others’ treatment for injury and funeral costs	Your own injuries
Others’ property damage	Damage to your personal belongings
Lawsuits involving slander, libel, defamation of character and other personal attacks	Others’ injuries or property damage that your business is liable for
Your legal defense costs	Intentional or criminal acts

An umbrella policy is designed to extend liability protection included in other types of insurance. Personal umbrella policies are most commonly paired with homeowners insurance, auto insurance, or watercraft insurance, and business umbrella policies are paired with general liability coverage under business insurance or commercial auto insurance.

Just as a regular umbrella protects you against harsh weather, umbrella insurance protects you against harsh legal consequences. 

What Does Umbrella Insurance NOT Cover?

Umbrella policies aren’t standard across the country. This means your policy could look quite a bit different from your neighbor's. However, there are a couple of common exclusions in umbrella policies, such as the following.

• Certain out-of-pocket expenses: Umbrella policies come with a “self-insured retention,” which is the amount the policyholder must pay if a claim isn't covered by their underlying policy. If a claim was covered by your umbrella insurance but not your auto, you’d have to pay this amount, often $1,000, before your umbrella coverage would cover the rest.
• Non-liability related disasters: Umbrella insurance is only designed to cover excess legal fees. So your coverage won’t protect you against property damage claims that exceed your homeowners insurance policy limits.
• Your own injuries: Umbrella policies don't cover personal injuries, no matter which policy they're paired with. You'd need health insurance for that.

One of the primary roles of an independent insurance agent is to make sense of your insurance. They'll work with you to help make sure you understand the coverages and non-coverages in good detail so you know what you are and are not covered for.

Do I Need Umbrella Insurance?


 
  
    
      
   
 
 
    
   
    
 
    
 
   
 
 


Umbrella Insurance Pros:	Umbrella Insurance Cons:
Provides extra liability coverage and legal defense costs once the limits of your auto, home or business insurance have been exhausted.	You must already carry auto or property insurance, usually homeowners, to qualify.
Covers incidents your primary insurance may not, like libel and slander.	You're required to buy a minimum amount of auto and/or property insurance liability coverage before you can add umbrella coverage.

Your umbrella policy is there to help protect you against unforeseen, expensive legal troubles. Here are a couple of common scenarios where umbrella insurance is critical.

• Car accidents: Whether you hurt someone else with your vehicle or damage their property, lawsuits following car accidents can get pricey, fast.
• Dog bites: Dog bites can be some of the most expensive legal claims filed against homeowners, with an average cost in 2019 of $44,760.
• Guest or customer injuries: Accidents on floors, stairs, and sidewalks are common and costly lawsuit when filed against homeowners and businesses. Without additional protection, you could be in even more trouble.

How Much Does an Umbrella Policy Cost? 

Most insurance companies offer $1 million umbrella policies priced somewhere between $150 and $300 per year. For an additional $1 million dollars in coverage, you'd add about $75 to your annual premium, and another $50 per year for each additional increment of $1 million. The cost of premiums directly relate to your specific personal and business risk exposures. 

The largest cost factors include the following

• Owning rental properties or second homes
• Owning more than two vehicles
• Owning a boat, motorcycle, camper, or ATV
• A driving record with accidents or violations in the last three to five years

Your Independent Insurance Agent Has Your Answers

Whatever you need, your agent has your back. With a brief intro into the terms, discounts, and process of your umbrella insurance, you know the kinds of questions to be asking. Your agent will ask you all about your liability needs and goals to help find the perfect blend of coverage at the right cost for you.