When it comes to insurance, it’s vital to purchase adequate coverage. Understanding your auto and home insurance coverage is essential. You need to know what your insurance company will cover when you’re in an accident, if you’re sued, or if a tenant falls on your rental property. Having insurance brings peace of mind, but there are times when your coverage reaches its limits.
That’s where umbrella insurance can provide additional coverage for your needs. Allstate, Geico, Liberty Mutual and Progressive rank among the top companies for these policies. Keep reading to see what other insurers made our list of best companies, who needs this type of insurance and how to purchase it.
- Umbrella insurance policies cost $200-380 annually for $1-5 million coverage.
- Allstate, Liberty Mutual, Progressive and State Farm offer umbrella insurance policies.
- Umbrella insurance policies are good for people who own specific dog breeds, own a rental property, have a teen driver in their home or own a pool or trampoline.
Best umbrella insurance companies
The companies were ranked the best by CarInsurance.com’s editors. To be considered, a company needed to be among the largest auto insurance companies, demonstrate financial stability with an AM Best rating of A+ or A++, offer umbrella policies in most states and offer coverage limits above $1 million.
Some of the best umbrella insurance companies — also on our best insurance companies of 2023 list — offer the following coverage options and requirements. They’re listed below alphabetically.
This insurance option offers a coverage limit of $1-5 million. An Allstate umbrella policy is also available in most U.S. states. It requires you to have a homeowners policy at $300,000. Your auto policy must be at $250,000 bodily injury liability per person, $500,000 bodily injury liability per accident and $100,000 property damage liability.
Geico requires a minimum bodily injury limit of $300,000/$300,000 and a property damage limit of $100,000 or $250,000/$500,000 and a property damage limit of $100,000 on your auto policy to qualify for an umbrella policy. Homeowners/renters personal liability coverage of $300,000 is also required. The cost of coverage depends on your coverage and personalized factors.
Umbrella insurance through Liberty Mutual includes $1-10 million coverage limits, available in all 50 U.S. states. A Liberty Mutual umbrella policy requires a Liberty Mutual auto policy with $250,000 bodily injury liability per person, $500,000 bodily injury liability per accident and $50,000 property damage liability and other insurance policy limits starting at $100,000.
An umbrella policy through Progressive offers $1-5 million coverage limits and is available in all 50 states. Contact Progressive for an umbrella insurance quote and to learn more about its auto and home policy limits.
Umbrella insurance through State Farm starts at $1 million with no set maximum limit and is offered in all 50 U.S. states. Its auto and home policy limits vary by state.
Travelers umbrella insurance provides policies for $1 million to $10 million of personal liability, which can help protect assets such as your home, car and boat.
USAA offers umbrella policies from $1 million to $5 million in coverage to USAA members. USAA serves current and former members of the U.S. military and their families. To purchase an umbrella policy, the following limits must be met first:
- Auto insurance bodily injury liability: $300,000 per person/$500,000 per accident
- Auto insurance property damage liability: $100,000 per person
- Rental property insurance personal liability: $300,000 per policy
- Homeowners insurance personal liability: $300,000 per occurrence
- Watercraft personal liability: $300,000 per occurrence
Who needs umbrella insurance?
An umbrella policy can benefit almost anyone. This is an extra layer of protection for you and your assets and provides coverage when you reach your primary policies’ limits. It can also be ideal if you have many assets or need additional lawsuit protection.
“Generally, this type of insurance is purchased by wealthy people with substantial assets that could be taken if their other insurance policies did not cover the full amount of the loss. For example, if they caused a major accident or someone was seriously injured at their home,” says Richard M. Alderman, professor emeritus and director of the Center for Consumer Law at the University of Houston Law Center.
A personal umbrella policy may be worth investing in if you’re:
- A homeowner or rental property owner
- Are a public figure
- Coach sports
- Have a teen driver in your home
- Have significant savings
- Host parties in your home
- Own a boat, pool, trampoline or guns
- Own certain dog breeds
- Serve on a nonprofit board
Remember, a personal umbrella policy pays out when the underlying coverage has reached its limit. If you decide to purchase umbrella insurance, most insurers will have requirements on how much liability you already have before they sell you a policy.
How do you get an umbrella insurance policy?
Getting an umbrella policy is relatively straightforward. Most major insurers offer it. You can easily shop around by calling a preferred provider and getting an umbrella insurance quote over the phone or by searching for umbrella insurance quotes online.
You will likely need to have established auto, homeowners, condo or renters insurance policies before adding a personal umbrella insurance policy. This might look like contacting your insurer and asking if you can add an umbrella policy for $1 million and your insurance agent telling you that you need to increase other policy liability amounts to qualify.
Umbrella insurance is typically sold in million-dollar increments, from $1-5 million. The coverage amount you choose determines how much you’ll pay for the policy, but it generally starts on average around $200-380 annually. The cost of umbrella insurance also varies based on risk factors, such as having a teen driver in your household or owning rental properties.
When should you buy umbrella insurance?
You can purchase umbrella insurance at any time. Suppose you are at risk of lawsuits or personal liability incidents, such as owning a trampoline and having weekend pool parties. In that case, you might want to consider investing in coverage sooner than later.
“Umbrella policy limits the risk of possibly losing assets or having to pay money if you suddenly incurred a large liability not fully covered by your auto and homeowners’ insurance,” Alderman says. “For example, how much equity do you have in your home, do you own a vacation home, what is the value of your investments, and what is your annual salary. All of these assets could be at risk if you do not have an umbrella policy.”
Final thoughts: Umbrella policies
In general, having umbrella insurance provides peace of mind protection and can benefit anyone who wants additional coverage for accidents, teen drivers in their household, property damage and tenant incidents.
If you would benefit from extended liability coverage, contact your insurance agent or company to discuss your options or get online umbrella insurance quotes.
Resources & Methodology
- Allstate. “Allstate umbrella insurance?” Accessed June 2023.
- Allstate. “Extra Protection PUP.” Accessed June 2023.
- Gallen Insurance. “10 actual claims on a personal umbrella policy.” Accessed June 2023.
- Geico. “Geico umbrella insurance.” Accessed June 2023.
- Insurance Information Institute. “Should I purchase an umbrella liability policy?” Accessed June 2023.
- Insurance Information Institute. “What is an umbrella liability policy?” Accessed June 2023.
- Liberty Mutual. “Liberty Mutual umbrella insurance?” Accessed June 2023.
- Progressive. “Progressive umbrella insurance.” Accessed June 2023.
- State Farm. “State Farm umbrella insurance.” Accessed June 2023.