Getting Started
Who needs umbrella insurance and what does it protect?
Reviewed by Maria Navarrete-Collins
The short answer
Umbrella insurance provides additional liability protection above certain underlying policies. It may be worth considering if you own property, have savings or income to protect, have young drivers or face additional liability risks.
Who may need this coverage
- Homeowners with meaningful equity or savings
- Families with teen or newly licensed drivers
- Landlords and owners of rental property
- Owners of pools, trampolines, ATVs or livestock
Why it matters
Liability claims are the losses most likely to exceed a standard policy limit, because injury costs and legal costs are hard to predict.
Situations in which it may be needed
- An at-fault accident with serious injuries
- A guest injured on your property
- A dog bite or animal-related injury
- A claim involving a tenant or visitor at a rental
Risks of being uninsured or underinsured
- Damages that exceed your auto or home liability limit
- Legal costs on top of a settlement
- Exposure of savings, wages or property to a judgment
- Multiple claimants from a single incident
What this coverage commonly helps protect
- Liability above underlying auto, home or farm limits
- Defense costs as described in the policy
- Certain claims across multiple properties or vehicles
- Household members listed on the policy
What it may not cover
- Your own property damage
- Business liability under a personal umbrella, in most cases
- Intentional acts
- Claims below the required underlying limits
Questions to ask your agent
- What underlying limits would I need to qualify?
- How much umbrella coverage fits my situation?
- Does it extend to my farm or rental property?
- What does adding this cost per year?
A practical checklist
- Add up savings, equity and future income
- Write down your current liability limits
- List higher-risk items such as pools or ATVs
- Compare the cost of raising limits versus adding an umbrella
- Review again when a new driver joins the household
Related coverage
Personal Umbrella
Extra liability protection that sits on top of your other policies.
See coverage detailsNot sure how this applies to you?
Maria will review your current policies and explain your options in plain language, with no obligation.
Related questions
Keep reading
Newsletter
Coverage tips, reminders and local news
One short email a month in English and Spanish. Renewal reminders, seasonal checklists and community giveaways. Unsubscribe any time.
Coverage descriptions are general educational summaries. Actual coverage, limits, conditions and exclusions depend on the issued policy and may vary by state. Contact a licensed insurance professional to review your specific needs.