What Is A Personal “Umbrella” Insurance Policy?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

While sometimes offered as a rider, an umbrella insurance policy is often sold as a stand-alone policy. Most insurers who offer this coverage require increased liability limits under existing homeowner’s or renter’s and automobile insurance policies before offering this coverage.

An umbrella policy provides liability coverage over-and-above the coverage provided under your homeowner’s, renter’s or automobile insurance. This is commonly referred to as “second-tier” or “second layer” insurance since coverage kicks in only after you exhaust other coverage (provided by the first-tier — your homeowner’s or renter’s or automobile insurance). Second-tier policies save money in the long run. They have a lower premium because a large majority of incidents will be covered by your first-tier coverage.

It is not uncommon today for someone to purchase one million dollars of coverage under an umbrella insurance policy.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption