What Umbrella Insurance Covers and What It Excludes
Your umbrella responds to liability and defense costs above your primary limits, and it excludes damage to your own home or vehicle.
Published July 21, 2026. Updated November 12, 2026. 3 min read. By Vow Insurance Partners.
This article is general information about how insurance usually works. Your policy’s own wording decides what it covers. Ask us about yours.
Issuing Insurance CompanyPersonal Lines Service Center PO Box 0000, Anytown ST 00000 Customer service (800) 555-0142
This is not a bill
Page 1 of 1
Personal Umbrella Liability DeclarationsNew business
Date issued 04/20/2027 Agent code ••142
Named insured and mailing addressJ. AND M. SAMPLE 14 SAMPLE LANE ANYTOWN ST 00000
Policy numberPU ••• ••0631
Policy period05/01/2027 TO 05/01/2028 12:01 A.M. STANDARD TIME
AgentAGENCY OF RECORD (555) 010-0142
Limit of liability
Each occurrence$1,000,000
Retained limit, where no underlying insurance applies$1,000
Schedule of required underlying insurance
ExposureUnitsMinimum underlying limits you must keep
Automobile liability2$250,000 EACH PERSON $500,000 EACH ACCIDENT $100,000 PROPERTY DAMAGE
Personal liability, residences1$300,000 EACH OCCURRENCE
Watercraft liability0NONE SCHEDULED
Recreational vehicles0NONE SCHEDULED
Operators, household2
If underlying insurance is not kept at the limits shown, this policy pays only what it would have paid had that insurance been in force. Tell us when you add a residence, a vehicle, a watercraft or an operator.
FormsPUL 0001 (03 26) PERSONAL UMBRELLA PUL 0210 (03 26) AMENDATORY
Annual premium$412.00
Countersigned byAuthorized representative
PUL DEC 03 26Read the underlying insurance condition in your policy.Page 1 of 1
Issuing Insurance CompanyPersonal Lines Service Center PO Box 0000, Anytown ST 00000 Customer service (800) 555-0142
This is not a bill
Page 1 of 1
Personal Umbrella Liability DeclarationsNew business
Date issued 04/20/2027 Agent code ••142
Named insured and mailing addressJ. AND M. SAMPLE 14 SAMPLE LANE ANYTOWN ST 00000
Policy numberPU ••• ••0631
Policy period05/01/2027 TO 05/01/2028 12:01 A.M. STANDARD TIME
AgentAGENCY OF RECORD (555) 010-0142
Limit of liability
Each occurrence$1,000,000
Retained limit, where no underlying insurance applies$1,000
Schedule of required underlying insurance
ExposureUnitsMinimum underlying limits you must keep
Automobile liability2$250,000 EACH PERSON $500,000 EACH ACCIDENT $100,000 PROPERTY DAMAGE
Personal liability, residences1$300,000 EACH OCCURRENCE
Watercraft liability0NONE SCHEDULED
Recreational vehicles0NONE SCHEDULED
Operators, household2
If underlying insurance is not kept at the limits shown, this policy pays only what it would have paid had that insurance been in force. Tell us when you add a residence, a vehicle, a watercraft or an operator.
FormsPUL 0001 (03 26) PERSONAL UMBRELLA PUL 0210 (03 26) AMENDATORY
Annual premium$412.00
Countersigned byAuthorized representative
PUL DEC 03 26Read the underlying insurance condition in your policy.Page 1 of 1
What This Means for YouYour umbrella pays above your home and auto liability. Your boat is not on this list, so it needs to be added before you need it.Source: National Association of Insurance Commissioners
Short Answer
An umbrella responds when you are held responsible for bodily injury, property damage or personal injury. It does not pay punitive damages, and it does not cover damage to your own home or vehicle.
What It Covers
Liability claims that your primary policy does not cover.
Costs above your primary limits.
The policy responds to liability and legal defense costs that exceed what the primary policy pays.
Situations in which you are held responsible.
These include bodily injury, property damage or personal injury.
What It Excludes
Damage to your home or vehicle.
For example, an umbrella would not cover hail damage to your car if your auto policy does not cover it.
Punitive damages.
An umbrella policy does not pay punitive damages.
When to Consider One
The National Association of Insurance Commissioners says you may want to consider an umbrella policy as you assess your risks. Check your auto and homeowners liability limits, what you could lose above them, and which underlying policies an umbrella would sit on top of. The policy wording determines each point.
What It Costs
A quote request gives you a figure for your own situation.
Business Owners
Business umbrella and excess coverage is a separate line of insurance. See Business Insurance.
Frequently Asked Questions
What does umbrella insurance cover?
It covers liability and defense costs that primary policies do not cover, as well as costs above the primary policy’s limits.
Does umbrella insurance cover damage to my car or house?
No. Umbrella policies do not pay for damage to your home or vehicle.
Does umbrella insurance pay punitive damages?
No. An umbrella policy does not pay punitive damages.