Umbrella Insurance

Last updated: December 9, 2025 Recently updated

Umbrella Insurance Guide

Extra liability coverage beyond your home and auto policy limits

Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations.

What is Umbrella Insurance?

Umbrella Insurance provides essential protection for you and your family. Understanding how it works helps you make better coverage decisions.

Key Features

Coverage details and benefits
What’s typically included
Common exclusions to be aware of
Cost factors that affect premiums

Who Needs Umbrella Insurance?

Learn whether this type of coverage is right for your situation and how to determine the appropriate coverage amount.

How to Choose a Policy

Tips for comparing policies, understanding terms, and finding the best value for your needs.

Frequently Asked Questions

Common questions about umbrella insurance answered.

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Data Sources

Umbrella insurance data in this guide come from NAIC (opens in new tab) , Insurance Information Institute (opens in new tab) , and industry reports. Learn more about our data collection methods on our Methodology page.

Frequently Asked Questions

What is umbrella insurance?

Umbrella insurance provides additional liability coverage beyond your auto and homeowners policy limits. If you’re sued and damages exceed your primary policy limits, umbrella coverage kicks in. It also covers some claims that standard policies exclude, like libel and slander.

How much umbrella insurance do I need?

A common guideline is coverage equal to your net worth (assets minus debts). Many people start with $1 million, which typically costs $150-300 per year. If you have significant assets, multiple properties, or high-risk factors (pool, teenage drivers), consider $2-5 million.

Is umbrella insurance expensive?

Umbrella insurance is relatively inexpensive for the coverage provided. A $1 million policy typically costs $150-300 annually; $2 million runs $200-350. You usually need minimum liability limits on your auto and home policies to qualify (often 250/500/100 auto, $300K home liability).

Property-Casualty by State

Property-Casualty requirements and costs vary significantly by state. Select your state for specific regulations, average premiums, and local resources.