Understanding Umbrella Liability Insurance
Umbrella insurance provides additional liability protection beyond the limits of your underlying policies. It's one of the most cost-effective risk management tools available.
How Umbrella Insurance Works
Umbrella coverage kicks in after your primary policy limits are exhausted. It requires that the claim be covered by an underlying policy (it doesn't stand alone).
Coverage Amounts
Umbrella policies typically start at $1 million. Additional increments are usually available at $1M or $2M. Costs are very reasonable, often $200-$500 per year for $1M coverage.
When You Need It
With even one property, umbrella insurance is valuable. With multiple properties or higher-income tenants, the liability exposure increases significantly.
Protecting Your Personal Assets
A major lawsuit could exceed your property insurance limits and threaten personal assets. Umbrella insurance protects your personal wealth from catastrophic liability claims.
Underwriting Requirements
Umbrella policies require that you maintain adequate underlying liability coverage. Insurers may require minimum liability limits (e.g., $300,000 on property policies).