Personal Umbrella Insurance 101

Updated May 3, 2024  |   Published January 11, 2023

A personal umbrella insurance policy extends well beyond your home and auto insurance in case you’re found liable for more than your other policies can cover. A personal umbrella policy gives you the flexibility to select a liability limit that best protects your assets, all the way up to 5 million dollars. It can also include: personal injury coverage, worldwide coverage, vacation rental liability coverage, and defense coverage. Personal umbrella insurance helps you avoid paying out of pocket if you’re liable for large claims on your assets.



Personal umbrella insurance covers:

  • An extension of the liability of your auto and homeowners insurance policies
  • Personal injury coverage
  • Libel and slander
  • False arrest
  • Malicious prosecution
  • Worldwide coverage
  • Vacation rental liability coverage
  • Legal defense costs for covered losses
  • Personal psychological harm and mental anguish

Personal umbrella insurance does not cover:

  • Property damages and injuries sustained by you
  • Property damages and injuries to others intentionally caused by you
  • Property damage that you cause while doing business or other professional activities
  • Liability that you’ve assumed by means of a contract

Certain umbrella policies also exclude damage or injuries caused by certain dog breeds or recreational vehicles, as well as medical bills, among other things.


Do you need personal umbrella insurance?

Personal umbrella insurance is not necessary for everyone. However, if you have a lot of assets or a high chance of being sued, you might want an umbrella policy. It might be worth buying umbrella insurance if you:

  • Own property
  • Have significant assets or other savings
  • Are worried about liability claims against you when traveling outside of the US
  • Own things that can lead to injury lawsuits such as pools, trampolines, guns, or dogs
  • Are a landlord
  • Have an inexperienced driver in your household
  • Coach kids’ sports
  • Often host parties in your home
  • Serve on the board of a nonprofit
  • Regularly post reviews of products and businesses
  • Take part in sports where you could easily injure others, such as hunting, skiing, or surfing
  • Are a public figure


Pros and Cons

To wrap things up, lets lay out the pros and cons of purchasing an umbrella policy, so that you can make the best decision for you and your family. Some pros of owning personal umbrella insurance are:

  • It provides extra liability coverage and legal defense costs once the limits of your auto, home, or other underlying policies (such as boat or motorcycle) have been exhausted
  • It covers incidents that your main insurance might not, such as libel and slander
  • Coverage is relatively inexpensive for limits starting at 1 million dollars
  • The coverage often applies everywhere in the world, so when you’re overseas or out of the country, you’re still covered
  • It may cover certain rental items for which you don’t have insurance, such as a boat

Here are some cons for owning personal umbrella insurance:

  • You must already carry auto or property insurance (usually homeowners) to qualify
  • You may need to have the umbrella policy and all underlying insurance with the same company. This prevents you from being able to shop around for better rates on individual policies
  • Your total premium costs may go up if you need to add extra liability coverage to your existing policies. You typically need a minimum amount of liability insurance on underlying policies to add an umbrella policy


At WebFirst, we can get you umbrella insurance to cover your assets and give you peace of mind. Consider contacting one of our agents today.


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