How to Find the Best Umbrella Insurance

If you caused a major car accident and the other driver sued you to cover their medical costs, would you have enough liability insurance to pay the damages? In a financially disastrous situation like this one, an umbrella insurance policy could help.

Umbrella insurance offers extra liability coverage beyond what’s on the policies you already have, such as auto or homeowners insurance. But there can be big differences from one umbrella policy to the next, including coverage details and maximum limits. Here’s how to find the best umbrella insurance for you.

How to find the best umbrella insurance

When comparing umbrella insurance options, consider the following questions.

What’s covered?

A standard umbrella insurance policy will cover injuries or property damage you cause to others, as well as your legal defense for such claims. But the nitty-gritty details may vary between policies.

For example, if your idea of a fun vacation is renting a Jet Ski and hitting the water, know that some umbrella insurers won’t cover these kinds of personal watercraft. The best umbrella insurance coverage for you will include your hobbies and other activities.

Many umbrella policies offer coverage anywhere in the world, which could be useful if you often travel overseas. But some policies may pay only for lawsuits brought in the U.S. or Canada.

You might also see some insurers offering excess liability policies, which tend to be similar but not identical to umbrella policies. Excess liability policies essentially boost the limits on the coverage you already have, while umbrella policies may also offer extra types of coverage that aren’t available on your existing policies.

An independent insurance agent can help talk you through exactly what’s covered and what isn’t by each policy you’re considering.

Check out our umbrella insurance guide to learn more.

How much underlying coverage is required?

Insurers often require a minimum amount of liability insurance on your underlying policies before you can buy umbrella insurance.

For instance, to add umbrella coverage to your car insurance, your policy may need to have $250,000 of bodily injury liability coverage and $100,000 of property damage liability coverage. To add umbrella coverage to a homeowners policy, you often need $300,000 of liability insurance.

If your existing policies fall short of these limits, increasing your coverage amounts will likely raise your premiums.

» MORE: Liability car insurance: What it covers and how it works

Can you buy your policies from different companies?

Before they sell you an umbrella policy, many insurers require that you carry your auto, homeowners, condo or renters insurance with them, too. RLI and Auto-Owners Insurance are two companies that offer stand-alone umbrella insurance policies, meaning you could carry your auto or homeowners coverage with someone else.

How much coverage should you buy?

Another factor to look at when shopping is the maximum limit a company offers. Most umbrella policies stop at $5 million, but some go higher. Farmers, for instance, offers umbrella insurance up to $10 million in most states, while Chubb's umbrella limits go up to $100 million.

When choosing your coverage limit, add up the value of your assets, such as savings, investments and real estate. These are things you could lose if someone files a lawsuit against you. Consider choosing an umbrella liability limit at least high enough to cover all your assets.

» MORE: How to calculate your net worth

Where to buy umbrella insurance

Many major carriers offer umbrella insurance. A good first step is to call your current auto and home insurer and request an umbrella insurance quote. Remember that you may have to increase the coverage limits on your underlying policies, which could raise your total cost.

If you have coverage with multiple companies, ask how much it would cost to move all your policies to that company, including the new umbrella. See if a bundling discount could reduce the total cost of your premiums.

We recommend getting quotes from at least three companies before making a decision. An independent agent or broker can shop around on your behalf and explain the coverage differences between policies.

» MORE: What is personal liability insurance for homeowners?

Umbrella insurance companies to consider

Below are some of the major umbrella insurance companies in the U.S., along with details about their coverage limits and eligibility requirements. Keep in mind that smaller regional insurers may also offer solid coverage at an affordable price. A local insurance agent can help you find them.

Allstate

Coverage limits: $1 million to $5 million.

States available: Washington, D.C., and all states except Alaska, Massachusetts, Nevada and New York.

Eligibility requirements: You must have underlying policies with at least the following limits:

» MORE: Allstate home insurance review

Amica

Coverage limits: $1 million to $5 million.

States available: Washington, D.C., and all states except Hawaii.

Eligibility requirements: Requirements vary by state. Generally, your underlying policies must meet the following minimums:

» MORE: Amica home insurance review

Auto-Owners

Coverage limits: $1 million to $5 million, with additional limits potentially available.

States available: Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia and Wisconsin.

Eligibility requirements: Eligibility requirements differ depending on underlying policy, underlying carrier and where you live.

» MORE: Auto-Owners home insurance review

Chubb

Coverage limits: $1 million to $100 million.

States available: All 50 states and Washington, D.C.

Eligibility requirements: Minimum limits for underlying policies vary by state.

Note: Chubb’s policy is technically an excess liability policy, not an umbrella policy.

» MORE: Chubb home insurance review

Farmers

Coverage limits: $1 million to $10 million, except in Florida and California, where the maximum limit is $5 million.

States available: All states except Alaska, Delaware, Hawaii, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, North Carolina, Rhode Island, Vermont, Washington, D.C., and West Virginia.

Eligibility requirements: Farmers must insure at least one car with bodily injury liability limits of at least $250,000 per person and $500,000 per accident. You can insure your home with any company as long as it has at least $300,000 of liability coverage.

» MORE: Farmers home insurance review

Geico

Coverage limits: $500,000 to $10 million. (Limits above $2 million require additional eligibility requirements.)

States available: Washington, D.C., and all states except Alabama, California, Georgia, Montana, Nevada, New York, Texas and Washington. In the states where Geico doesn’t currently sell umbrella insurance, it can offer a policy through a partner carrier.

Eligibility requirements: You generally must have all vehicles insured with Geico and have the following minimum coverage limits on any relevant underlying policies:

» MORE: Geico home insurance review

Liberty Mutual

Coverage limits: $1 million to $5 million.

States available: All states except California, Georgia, Louisiana and New Jersey. Coverage limits and requirements vary by state.

Eligibility requirements: You generally must have a Liberty Mutual auto policy with at least the limits below, but requirements may vary by state. The other policy types are optional, but if you have any of them, the liability limit must be at least $100,000.

» MORE: Liberty Mutual home insurance review

Nationwide

Coverage limits: $1 million to $5 million.

States available: Washington, D.C., and all states except Alaska, Hawaii, Louisiana and Oklahoma.

Eligibility requirements: It depends on where you live. In most cases, all vehicles and your primary home must have Nationwide policies with at least the following limits:

» MORE: Nationwide home insurance review

Progressive

Coverage limits: $1 million to $5 million.

States available: All except Alaska, Hawaii, Wyoming and Washington, D.C.

Eligibility requirements: Vary by state.

» MORE: Progressive home insurance review

USAA

Coverage limits: $1 million to $5 million, with higher limits available through the USAA Insurance Agency.

States available: All 50 states and Washington, D.C.

Eligibility requirements: USAA policies are available only to veterans, active military and their families. The following limits apply to underlying policies: