What Is Included Under a Personal Umbrella Coverage? 

Liability claims can quickly become costly, especially when legal fees or judgments exceed your regular insurance limits. Personal umbrella insurance may provide additional financial coverage when claims reach the limits of your underlying policies.

What Does Personal Umbrella Insurance Cover?

A personal umbrella policy kicks in when the liability limits of your home, auto or other insurance are reached after a claim. It may cover various situations, such as the following:

• A serious auto accident where you’re at fault and damages exceed your auto liability limits
• Someone getting injured at your home and filing a lawsuit
• A defamation claim involving social media posts
• An accident caused by your child that results in injury or property damage
• Legal defense costs for covered lawsuits

Personal umbrella insurance does not cover everything. It typically doesn’t cover your injuries, property damage, business-related losses or liability from certain high-risk activities. Coverage also won’t extend to intentional or criminal acts.

How to Qualify for Personal Umbrella Coverage

Insurance companies typically require a few foundational steps to qualify for personal umbrella insurance. Here’s what most insurers will look for:

• Minimum liability limits on base policies—You must carry specific liability limits on your underlying policies. If your existing coverage doesn’t meet these requirements, you’ll likely need to raise your limits before an umbrella policy can be issued.
• Clean driving record—Applicants with recent DUIs, multiple speeding tickets or at-fault accidents may be denied or pay more for coverage.
• Low-risk lifestyle factors—While not always required, insurers might evaluate lifestyle risks. Owning high-risk breeds of dogs, having a trampoline or frequently hosting large events could affect eligibility or pricing.
• Personal interview or questionnaire—You may need to complete a short application or questionnaire. This helps the insurer understand your risk exposure, such as property ownership, recreational vehicle use or social media activity.

The agents at The Insurance Gurus can help you learn more about personal umbrella insurance. Contact us today to get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.