Umbrella Insurance
An umbrella pays liability and legal defense costs above what your home and auto policies pay. It does not pay for damage to your own home or car.
What Umbrella Insurance Covers
An umbrella responds when you are held responsible for bodily injury, property damage or personal injury. Read more in what umbrella insurance 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 Umbrella Insurance Does Not Cover
- 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.
How Much Umbrella Insurance Do I Need?
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.
- Why limits matter.
- If a court judgment or settlement is more than your policy limits, you pay the difference.
- When to consider one.
- The National Association of Insurance Commissioners says you may want to consider an umbrella policy as you assess your risks.
- Worth a look.
- It is worth a look if a claim could run past your limits.
- The price.
- A quote request gives you a figure for your own situation.
How Umbrella Works With Your Home and Auto Policies
An umbrella adds liability coverage above your auto and home policies.
- Homeowners Insurance.
- If a claim against you is larger than your limits, a personal umbrella policy can pay liability and defense costs above them.
- Auto Insurance.
- A personal umbrella policy can pay liability and defense costs above what your auto policy pays.
- 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.
Do I need an umbrella policy?
An umbrella pays liability and legal defense costs above what your home and auto policies pay. It does not pay for damage to your own home or car. It is worth a look if a claim could run past your limits.
Start With the Liability Limits on Your Auto and Homeowners Policies. That shows what an umbrella would sit on top of. Every kind of personal coverage is on the Personal Insurance page.