You have home insurance. You have auto insurance. But what happens when a lawsuit exceeds those policy limits? That's where umbrella insurance comes in — and it might be the most valuable coverage you've never heard of.
How umbrella insurance works
Think of umbrella insurance as a safety net that sits on top of your existing policies. Your home and auto insurance each have liability limits — typically $300,000 to $500,000. If you're found responsible for damages or injuries that exceed those limits, your umbrella policy picks up where they leave off.
For example, if you cause a car accident resulting in $800,000 in damages and your auto policy covers $300,000, your umbrella policy would cover the remaining $500,000 — plus legal defense costs.
What does umbrella insurance cover?
- Bodily injury liability beyond your auto or home policy limits
- Property damage claims that exceed underlying coverage
- Personal injury claims like slander, libel, or defamation
- Landlord liability for rental properties you own
- Legal defense costs — even up to your full policy limit
Who needs umbrella insurance?
Anyone with assets worth protecting should consider umbrella insurance. You're especially at risk if you:
- Own a home or significant savings and investments
- Have a teenage driver in your household
- Own a swimming pool, trampoline, or certain dog breeds
- Are a landlord or host frequent gatherings
- Serve on a nonprofit board or coach youth sports
How much does it cost?
Here's the surprising part: umbrella insurance is remarkably affordable. Most people pay around $200 per year for $1 million in coverage. That's less than $17 a month for an extra million dollars of protection. When you bundle it with home and auto coverage through bubl, you can save even more.
The bottom line
Umbrella insurance is one of the best values in the insurance world. For a fraction of what you pay for home or auto coverage, you get a massive boost in liability protection. If you have anything worth protecting — a home, savings, future earnings — it's worth adding to your bubl.