Umbrella Insurance
Excess liability coverage sitting above auto, homeowners, and other personal policies in million dollar layers.
Overview
It pays when an underlying liability limit exhausts, extends to claims the base policies exclude, such as libel, slander, and some foreign rental car liability, and adds defense costs that can dwarf the judgment itself. Carriers require minimum underlying limits, for example 250/500 auto, before binding. Dog bites, teenage drivers, trampolines, pools, and social media defamation drive the classic claims. When judgments exceed limits the difference comes from personal assets and wages, which is the gap the policy covers. It also extends to certain liabilities of household members, such as students away at school. Given rising jury awards, agents consider it among the highest value dollars in personal coverage.
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