Fine Print Guide

Extra protection · Personal umbrella

Umbrella insurance

Adds extra liability protection, usually $1 million or more, on top of your home and car policies, for when a serious accident or lawsuit exceeds their limits.

Who it's for
People with savings, a home, or future income worth protecting, and people with a pool, a teen driver, a dog or a rental property.
Is it required?
No. The insurer will require minimum liability limits on your home and car policies first.

Usually covered

  • Injury or damage claims against you above your home or car liability limits
  • Your legal defense costs, often on top of the limit
  • Some claims your other policies leave out, like libel or slander
  • You and your household, worldwide

Usually not covered

  • Your own injuries or your own property
  • Business activities, which need a commercial umbrella
  • Harm you meant to cause
  • Claims between members of your household

Real-life examples

You cause a crash that seriously injures two people, and the court awards $800,000.

Usually covered

Your car policy pays up to its limits, say $300,000 in total. The umbrella pays the rest, up to its own limit. With split limits, the per-person cap can mean the car policy pays less and the umbrella more.

A guest is injured in your pool and sues.

Usually covered

Your home policy's liability pays first; the umbrella pays whatever goes over its limit.

Good to know

Why Americans carry so much liability coverage

US courts can award large amounts for medical costs, lost income and pain and suffering, and someone who wins a judgment can pursue your savings and future wages. An umbrella is usually an inexpensive way to raise that protection a lot.

Check your own policy

Find these on your policy or declarations page, or ask your agent:

  • The minimum limits the umbrella requires on your home and car policies
  • That every car, home and rental property is listed

Not sure where to look? See how to read your policy.

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