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What is umbrella insurance?

An umbrella policy can provide additional protection beyond your home and auto insurance policies' liability limits. In the event of a large liability claim, it can provide you with extra protection and peace of mind.

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Who needs umbrella insurance?

Most people can benefit from having umbrella insurance. If you own a home, a car, a business, have kids, etc. Basically, if you own things you don't want to lose, umbrella insurance can help. The more stuff you have the more coverage you may want to get.

Some examples of when an umbrella policy may be helpful

  • You have a swimming pool or trampoline, which increases the risk of injuries
  • Someone in injured at your home or rental property and sues you for compensation and medical care
  • Your pet injures someone and your home liability limits aren't enough to cover the expenses
  • You're at-fault for a car accident that results in personal property or bodily injury higher than your policy limits
  • You have young or inexperienced drivers in your home and want extra protection beyond your existing policy limits

How much coverage do I need?

To determine if you need an umbrella policy in addition to your home or auto policies, start by totaling your current net worth. Start by adding your assets (belongings) and any money like savings you have. Next, subtract any debts you owe like a mortgage or car payment. Now, see how this compares to your existing liability limits.

In some cases you can raise your existing limits, however, it's good to get estimates as it could be cheaper to add an umbrella policy instead. Most umbrella policies typically start at $1 million in coverage and can go higher. So, for example, if you have a $1 million umbrella insurance policy and are sued for $1.5 million, you would typically be responsible for paying the remaining $500.000 out of pocket. However, if you have a policy with a $2 million dollar limit, you would be fully covered.

What doesn't ummbrella insurance cover?

While umbrella insurance is designed to give you broad coverage for a variety of situations, there are exclusions to be aware of. These can include

  • Criminal or intentional acts
  • Business or professional related activities
  • At-fault accidents and permissive drivers
  • Contracted workers at your location or other contractual agreements
  • Damage to your own property
  • Asbestos, lead, and mold
  • Aircraft and drones
  • RideSharing and vehicle sharing programs

To understand what you are and aren't covered for, make sure to review your policy so you're aware of your policy's specific limitations.

Learn more about umbrella insurance at or calll us at 888-498-2145 to start your quote.

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Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.