Personal Umbrella Insurance: How It Fits
Learn how umbrella liability coverage may sit above home and auto policies and which conditions to review.
Learning Center › Personal Umbrella Insurance: How It Fits
Personal umbrella insurance can provide additional liability protection above certain underlying policies, such as auto or homeowners insurance. It may also cover some claims that an underlying policy does not, subject to its own terms. It is not a substitute for reading the underlying policies.
Where to begin
Look at the liability limits on your auto, home, renters, and other applicable policies. Think about exposures such as frequent driving, property you own, household members, pets, or activities that could lead to a significant claim. The amount that fits one household may not fit another.
An umbrella insurer may require minimum limits on the underlying policies. Ask which policies and people are included, what is excluded, when the umbrella begins paying, and whether a retained limit applies. Coverage for a business activity or rental property should be discussed explicitly; never assume it is included.
Compare the whole arrangement
The premium for an umbrella policy may be only part of the cost. Raising underlying liability limits to meet eligibility requirements can change those premiums too. Compare the full arrangement and make sure your policies identify the people, vehicles, and properties you intend to cover.
The NAIC's umbrella policy explanation offers additional background. If you are unsure how your current limits work together, we can walk through them with you. Start a conversation.