Who this is for
Anyone whose net worth or future income is larger than their liability limits, which is most homeowners. Also anyone with a teenage driver, a pool, a dog, a rental property, or a seat on a nonprofit board.
What it typically covers
Excess liability. Additional limits above the liability on your auto, home and boat policies.
Legal defence costs. Usually paid outside the limit, which matters more than people expect.
Certain claims your underlying policies exclude. Libel, slander and false arrest, on most contracts.
Rental property liability. When the properties are scheduled on the policy.
Worldwide coverage. For personal incidents, anywhere, as long as they are not business related.
What it usually doesn’t cover
Anything arising from a business or professional service you provide
Intentional acts and criminal conduct
Damage to your own property, which is what your home and auto policies are for
Claims below your underlying limits, which the umbrella sits above rather than replaces
Vehicles, homes or watercraft that were never scheduled on the policy
The requirement people miss
An umbrella only works if the policies underneath it carry the minimum liability limits the umbrella carrier requires, usually $250,000 per person and $500,000 per accident on auto, and $300,000 on home. Buying the umbrella without raising those first leaves a gap exactly where you thought you were covered.
How we’d approach it
We check the underlying limits first, raise them where the umbrella carrier requires it, and then price the umbrella. The uplift on the underlying policies is usually smaller than people assume, and it often pays for a good part of the umbrella premium.