What does an umbrella insurance policy cover?

Umbrella insurance covers the following liability risks when the damages are in excess of the limits on your home or auto policy, including major property damage, serious injuries, landlord liability and legal fees. It also covers risks not covered by personal liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people., such as libel or slander, malicious prosecution, false arrest and wrongful eviction or invasion of privacy lawsuits against you.

  • Significant property damage. Your standard auto insurance liability limit may be exhausted if you’re at fault in an auto accident in which you destroy another vehicle and/or other property. It also applies to property damage caused in other ways if you are responsible.
  • Serious bodily injury liability. Your homeowners insurance liability limit may be insufficient to cover medical and other costs related to a guest falling off a balcony at your home or being bitten by your dog. It also applies in a car accident where your limits are exceeded.
  • Landlord liability. A tenant might file an expensive suit over an injury sustained while renting your property.
  • Legal fees. If you are sued, umbrella insurance will cover legal fees to defend you.

In addition, umbrella insurance covers a few things auto and home usually don’t:

  • Libel or slander. Lawsuits could result from something that you say or write about another person.
  • Malicious prosecution. If someone claims you filed a lawsuit against them without cause and with malicious intent, your umbrella policy will cover your defense.
  • False arrest, detainment or imprisonment legal procedures.
  • Wrongful eviction legal procedures.
  • Invasion of privacy lawsuits against you.

Umbrella insurance offers much higher limits of coverage, up to $5 million or more. Make sure you know how much umbrella insurance you need.

"If someone is severely injured, the immediate medical costs and projected future costs of medical care and perhaps remodeling a home to accommodate the person's injuries could quickly exceed $1 million," says Ronald Moore, a former senior product manager for MetLife.

What’s not covered under an umbrella insurance policy?

Umbrella insurance does not cover injuries to you or your household members, damage to personal property, intentional or criminal acts, business losses, nuclear accidents, war, terrorism, oral or written contracts or disease transmission.

  • Your injuries: Umbrella insurance doesn't cover injuries to you or your household members, only to others.
  • Personal belongings: Damage to your personal property is not covered.
  • Intentional or criminal acts: Damage or injuries done on purpose or in the commission of a crime are not covered.
  • Business losses: Umbrella insurance doesn't cover losses associated with a business you run.
  • Nuclear accidents, war or terrorism
  • Contracts that are written or oral
  • Communicable disease transmission: Many umbrella policies will not cover you if you are found liable for transmitting a disease to someone else.

Read the fine print in an umbrella policy to see what coverage is excluded and be sure you understand how your umbrella insurance works.

Umbrella insurance calculator

Find out how much umbrella insurance you need in a few short steps

1Assets
2Debts
3Coverage
4Risk Exposure
5Results

What are your assets?

Enter your best estimate if you don't have exact numbers
Two hundred fifty thousand dollars
One hundred eighty seven thousand five hundred dollars
One hundred twenty thousand dollars
Forty two thousand five hundred dollars
$600,000
You should have assets!

What are your debts?

It's acceptable to estimate if you don't know the actual amounts
One hundred thousand dollars
Twenty five thousand dollars
Five thousand dollars
Twenty thousand dollars
$150,000

How much coverage do you have?

Enter your current home and auto insurance liability limits.

Before buying umbrella insurance, increase your underlying limits to the maximum available for both home and auto insurance.

What are your risk factors?

Check all that apply:

Results

Our recommendation: You need umbrella insurance of at least $1 million. Before buying an umbrella policy, you need to increase your home and auto insurance liability limits. Click the eligibility tab for details.
Your Net Worth $450K
Risk Level
Your Assets $600K
Your Liabilities $150K
Insurance Coverage $0
Risk Factors: Your current risk profile indicates a low level of risk exposure. However, to protect your assets, we recommend that you purchase an umbrella insurance policy.

You don't need an umbrella insurance policy.

Eligibility Criteria: To be eligible for an Umbrella Policy, insurance companies will require you to maintain certain minimum liability limits on your auto and homeowners policies.
Auto Insurance Policy
  • $250,000 per person (bodily injury)
  • $500,000 per occurrence (bodily injury)
  • $100,000 (property damage)
Home Insurance Policy
  • $300,000 liability
Boat Insurance
  • $100,000 for smaller boats
  • $300,000 for larger boats (26 ft or longer, 50 HP or up)
All information provided is strictly confidential. No contact information is required unless you request a quote.

FAQ: What does an umbrella insurance policy cover?

Does an umbrella insurance policy cover dog bites?

Yes. Home insurance liability generally covers dog bites. However, there are some breed exclusionsItems that are specifically denied coverage under the terms of an insurance policy. For example, most auto insurance policies exclude coverage for normal wear and tear, drag racing and intentional acts.. If the dog bite damages are covered and exceed your standard policy coverage limits, your umbrella policy will kick in.

Yes, umbrella insurance covers lawsuits brought against you for reasons listed in the policy terms. Before committing to a particular policy, determine what types of lawsuits are covered by reading the fine print. 

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