Umbrella insurance provides excess liability over and beyond the liability of the existing policies in force, starting at $1,000,000. Umbrella insurance is available for both personal and business policies.
This policy requires higher liability limits, usually $250,000 / $500,000, and coverage requires both auto and home policies.
An umbrella policy is an insurance policy with additional liability limits in which coverage begins after the underlying policy (typically auto and home policies) limits have been depleted. Think of an umbrella that covers your auto, home and other liability risks.
The cost of an umbrella policy is dependent on the underwriting factors of the insureds and household members covered under the policy. Things like; age, driving record, and claims history. Another factor for the umbrella rate is having all of your policies packaged with the same carrier if the situation permits. The annual premium for an umbrella policy is usually inexpensive for most households.
An umbrella policy will provide additional liability coverage. For example, if a policy holder get's sued, this can often help.
What is not covered by an umbrella is physical damage of a vehicle or property damage in the underlying policies. Umbrella policies have coverage for liability and uninsured protection.