Umbrella Insurance Coverage Guide
Understanding excess liability protection
What is Umbrella Insurance?
Umbrella insurance provides extra liability coverage beyond the limits of your auto, homeowners, or renters insurance. It kicks in when your underlying policy limits are exhausted.
Example:
You cause an accident with $400K in injuries. Your auto policy covers $300K. Your umbrella policy covers the remaining $100K.
What's Covered
Auto accident liability beyond limits
Homeowners liability claims
Libel and slander lawsuits
Landlord liability (rental properties)
Dog bite claims
Personal injury lawsuits
False arrest or imprisonment claims
Worldwide coverage
What's NOT Covered
Business liability
Intentional damage
Your own injuries
Property damage to your belongings
Criminal acts
Contractual liability
Underlying Coverage Requirements
Insurers require minimum liability limits on your auto and home policies:
Auto Liability (per person)
$250,000
Homeowners Liability
$300,000
Who Needs Umbrella Insurance?
- • Homeowners with assets to protect
- • Landlords with rental properties
- • High net worth individuals
- • Teen drivers in the household
- • Pool or trampoline owners
- • Public figures at risk of lawsuits
- • Dog owners (especially certain breeds)
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Data from NAIC, Insurance Information Institute (III) 2026