Umbrella insurance provides additional liability coverage above and beyond your auto, home, and other insurance policies. It kicks in when you exhaust the liability limits on your underlying policies.
What Umbrella Insurance Covers
- Bodily injury liability beyond your auto or home policy limits
- Property damage liability exceeding base policy limits
- Libel, slander, and defamation claims
- False arrest, detention, or imprisonment
- Legal defense costs
Who Needs Umbrella Insurance?
Consider umbrella insurance if you:
- Own significant assets (home, investments, savings)
- Have a swimming pool, trampoline, or dog
- Own rental properties
- Are a landlord
- Have teen drivers
- Coach youth sports or volunteer
- Have a high-profile career
- Simply want extra peace of mind
How Much Does It Cost?
Umbrella insurance is remarkably affordable — typically $150-$300/year for $1 million in coverage. Additional millions cost $75-$100 each. It's one of the best insurance values available.
How It Works
Example: You cause a serious car accident with $800,000 in injuries. Your auto policy covers $300,000. Without umbrella insurance, you're personally liable for $500,000. With a $1 million umbrella policy, it covers the remaining $500,000.
Written by the Ensureing Team
Updated March 2026 · 3 min read
