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We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info. Umbrella insurance is a type of liability insurance that adds extra coverage to other policies, known as underlying policies. These underlying policies include auto, homeowners, and renters insurance policies. Umbrella insurance covers either personal or commercial liabilities, depending on which type of policy you purchase. Car accidents, dog bites, swimming pool accidents, and slip-and-fall accidents are all examples of the types of claims that are typically covered by personal umbrella policies. The best umbrella insurance policies are offered by reputable companies with years of insurance industry experience. These policies will be competitively priced, tailored to your needs, and have different options for personal and commercial uses. They will include things like protection from third party claims. Best Umbrella Insurance Companies of 2022
Best Overall: Liberty Mutual Liberty Mutual
Why We Chose It This company has a long standing positive reputation in the insurance industry and offers high policy limits even if you don’t have other types of insurance with them. Pros & Cons Pros
Cons
Overview Since 1912, Liberty Mutual has provided a plethora of insurance products and services “to meet its customers’ ever-changing needs.” The company maintains an A (Excellent) rating from AM Best. Coverage limits start at $1 million for personal umbrella insurance to cover liabilities, attorney fees, and other expenses associated with a claim against you and the members of your household. When it comes to commercial umbrella insurance coverage, Liberty Mutual goes above and beyond as it offers up to $35 million in coverage over Liberty Mutual Insurance’s own underlying liability policies and up to $25 million over another provider’s policies. This means you aren't required to purchase other commercial insurance policies from Liberty Mutual to be eligible for commercial umbrella coverage. In addition, Liberty Mutual’s unique crisis management support allows businesses to get up to $250,000 in consulting to navigate any brand or reputation issues that may arise as a result of a claim. Best for High Net Worth Families: Chubb Chubb
Why We Chose It Chubb offers some of the highest liability limits in the industry and covers policyholders overseas as well. Pros & Cons Pros
Cons
Overview Chubb has been around since 1882 and specializes in a variety of insurance products for high net worth individuals. It has earned a reputation as the largest publicly traded property and casualty insurance company as well as the largest commercial insurer in the country. It maintains the highest possible AM Best rating, an A++ (Superior). The company offers personal and commercial umbrella insurance that ranges from $1 million to $100 million. Umbrella insurance policies with Chubb cover all legal expenses that stem from a covered event on top of any settlement amount—the legal defense costs are not considered part of the coverage limit. Policies also protect you against libel and slander lawsuits that may tarnish your reputation. In addition, it’ll give you an extra layer of protection if you get into an accident with an uninsured or underinsured driver. While Chubb does not offer insurance in all 50 states, it does have 44 branch locations in various regions throughout the U.S. Best for the Military Community: USAA USAA
Why We Chose It USAA provides military service members, veterans, and their families rates as low as $20 per month with discounts available only to members. Pros & Cons Pros
Cons
Overview Founded in 1922 by several Army officers, USAA began as a car insurance company. Today, it serves nearly 12 million current and former members of the military and their families with a number of different insurance products. USAA receives the highest possible rating from AM Best, an A++ for Superior financial strength. With its personal umbrella insurance policy, you can get between $1 million and $5 million in coverage for as little as $20 a month. Only members are able to purchase umbrella insurance from USAA, meaning you must be an existing serviceman, veteran, or family member of one. In addition to being a member, you must also have your auto insurance with USAA to be eligible for an umbrella policy. This allows the company to diminish gaps in coverage and simplify the claims process. USAA members have the option to have homeowners coverage maintained through USAA or another carrier. USAA offers personal umbrella insurance policies in all 50 states. There is not an option for commercial umbrella insurance. Best for Small Business Owners: Travelers Travelers
Why We Chose It Travelers offers multiple types of umbrella coverage for business owners, making it flexible and adjustable to a small business’ needs. Pros & Cons Pros
Cons
Overview Travelers has been in the insurance industry since 1864 and employs 13,500 independent agents and brokers throughout the United States, Canada, and the United Kingdom. The company offers both personal and commercial umbrella insurance for all types of businesses. Travelers maintains an A++, Superior rating with AM Best, the highest possible rating. Policies are available in all 50 states. Personal umbrella coverage ranges from $1 million to $10 million. For higher limits, you will need special underwriting. Travelers also offers four types of excess coverage for business owners that includes a standard umbrella, excess liability, monoline umbrella, and excess surplus. Policies start at $1 million in liability coverage and go up depending on revenues, assets, and overall risk. Travelers umbrella insurance provides global protection on liabilities arising from claims on your home, auto, boat, or recreational vehicle policies. While you are not required to have underlying policies with Travelers, you may receive a lower premium for doing so. Best for Bundled Coverage: Geico Geico
Why We Chose It Geico provides discounts when you bundle your policies, helping offset the cost of an additional insurance policy. Pros & Cons Pros
Cons
Overview Since its inception in 1936, Geico has grown significantly. While it’s primarily known as a car insurance company, Geico offers a number of other products, including personal umbrella insurance to individuals in all 50 states. The company maintains an A++ rating for financial strength from AM Best. If you’d like an umbrella insurance policy with Geico, you must purchase car insurance from them too—unless you live in New York or New Hampshire. Geico also requires that you have certain minimum liability limits on your car, homeowners, and boat (if applicable) insurance policies before you are eligible for umbrella coverage. The insurer can provide you with $1 million in coverage on top of your car and homeowners policy limits. Geico offers a multi-policy discount when purchasing umbrella insurance as well as car and homeowners policies through it. This can save you money as a bundle as well as prevent surcharges. There may be a surcharge for having your home insured at another insurance carrier. Best for Avid Travelers: Allstate Allstate
Why We Chose It Allstate’s umbrella insurance will cover you regardless of what state or country the incident happens in and for whatever reason, including driving in a foreign country, boating, or RVing. Pros & Cons Pros
Cons
Overview Allstate entered the insurance market in 1931. The company’s mission is to “be the Good Hands” and protect its customers through a variety of insurance products. Allstate offers both personal and commercial umbrella insurance and maintains an A+ rating with AM Best. Personal umbrella policies range from $1 to $5 million, going up in $1 million increments. These policies specifically cover you when abroad if a claim occurs—assume something like a car accident while driving in a foreign country. Commercial coverage starts at $1 million contingent on where the business insurance is underwritten and the overall risk needs of the company. Allstate specifically markets to boat owners and those who rent boats while on vacation. Its policies are priced to include boat accident liabilities such as water skiing while staying at Lake Tahoe. The legal coverage extends to any state you have an accident or incur a liability in, making the policy extremely portable. Final VerdictAll of the providers that made our list of the best umbrella insurance have different positive and negative attributes. Some policies are designed for small businesses and others are tailor-made for high net worth individuals. Overall, we recommend checking out Liberty Mutual. It’s a well respected insurance company and it offers purchasing flexibility and high coverage limits. Compare The Best Umbrella Insurance Companies
What Is Umbrella Insurance? Guide to Choosing the Best Umbrella Insurance CompanyDo You Need Umbrella Insurance?Before determining if you need umbrella insurance, you will want to assess your current situation, your insurance needs, and what coverage you already have in place. Consider umbrella insurance if you’re a higher net worth individual which may put you at risk for lawsuits. Additionally, if you’re a small business owner looking for protection from possible monetary damages, or someone who is concerned with being sued, umbrella insurance may be a smart option for you. Comparing Umbrella Insurance CompaniesBefore selecting umbrella insurance, you will want to check out the provider and their reviews and ratings. Then compare them with other companies by considering the following criteria:
Selecting An Umbrella Insurance Provider That Works For YouAfter you have selected the right umbrella insurance company for your needs, it’s time to get a quote, select the policy, and enroll. This can either be done online or over the phone with an agent where you can ask questions about the different types of available policies. A payment is usually required and can be paid in the form of a credit card. Find out if your policy auto-renews and when payments are due. You can typically manage your policy online or from an app on your smartphone or tablet if the provider offers one. What Is an Umbrella Insurance Policy?An umbrella insurance policy provides extra liability coverage for a variety of other policies. It can serve as a supplement to homeowners and auto insurance as well as increasing coverage for boat, rental property, and vacant land policies. As long as you have one or more of these underlying insurance policies with minimum coverage amounts, you may be eligible for umbrella insurance. You may even find that it’s less expensive to invest in an umbrella policy than it is to increase liability limits on multiple underlying policies. How Does an Umbrella Policy Work?An umbrella insurance policy sits over the limits of other policies under it—meaning, the underlying policy will take first position in the claim and then the umbrella kicks in when the underlying policy hits its maximum. For example, if you host a pool party and one of your son's friends slips, falls into the pool, and sustains $500,000 in injuries, your homeowners insurance will only pay to its limits, which might only be $100,000. With an umbrella offering $1 million in additional coverage, you are covered. The same umbrella policy would kick in if you were responsible for a car accident where the car hit a building leaving $400,000 in structural damages. If the auto insurance only has a $250,000 limit, the umbrella pays the added $150,000 and any legal fees required to defend you. What an Umbrella Policy Does Not CoverUnfortunately, an umbrella insurance policy doesn’t cover everything. It pays excess liabilities regarding bodily injury, personal injury, property damage, landlord's liability, and business-related losses. However, it won’t protect you against losses related to your business, personal belongings, oral or written contracts, or any intentional or criminal acts. Does Homeowners Insurance Cover a Civil Lawsuit?Some homeowners insurance policies do cover civil liability lawsuits such as your dog biting an elderly lady, but only up to a limit. Many homeowners maintain the minimum $100,000 worth of liability coverage. If your civil lawsuit costs you $400,000, a claim to the umbrella policy is made to cover the excess not paid for by the homeowners policy. Ultimately, it can save you $300,000 or more in out-of-pocket expenses. How Much Does Umbrella Insurance Cost?According to the Insurance Information Institute, you may be able to lock in $1 million worth of umbrella coverage for anywhere between $150 to $300 per year. You can expect to pay $75 for the next million and $50 for each additional million dollars of coverage after that. If you have few claims and don’t participate in high-risk activities like jet skiing or ATV riding, it can be very affordable. Bundling your umbrella insurance with your car and homeowners policies may mitigate the cost as well with discounts. MethodologyWe researched and reviewed more than a dozen of the top insurance providers that offer umbrella insurance. We chose reputable companies with high overall ratings and reviews and years of insurance industry experience. We also considered things like the amount of coverage offered, policy prices, the quote process, and the number and types of umbrella insurance policies offered. How much is a good umbrella policy?Umbrella insurance costs roughly $150 to $350 a year for the first $1 million of coverage and about $100 per million of coverage above that. What you'll actually pay depends on where you live (rates vary by state and the insurer's experience there) and how many homes, cars and boats you're insuring.
Are umbrella plans worth it?Is umbrella insurance worth it? If you have significant assets, it's worth getting an umbrella policy. The liability insurance within your auto and homeowners insurance policies might not be sufficient if you get sued for an incident such as dog bite, car accident or accidental injury to someone else.
Do I need a million dollar umbrella policy?As a general rule, you might hear you should purchase umbrella insurance if the total value of your assets, including ordinary checking and savings accounts, retirement and college savings and investment accounts, and home equity is greater than the limits of your auto or homeowner's liability.
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How much does a $5 million dollar umbrella policy cost
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