How Much Should I Get Personal Umbrella Insurance For And What Does It Cover?

No one likes to think about what could happen if they were responsible for an accident that caused serious harm or property damage, but it’s important to be prepared. That’s where personal umbrella insurance comes in. Personal umbrella insurance is an extra layer of protection that can help cover costs above and beyond your regular homeowner’s or auto insurance policy. But how much coverage do you need, and what exactly does it cover? In this blog post, we’ll explore those questions and more, so you can make an informed decision about whether personal umbrella insurance is right for you.

What is personal umbrella insurance?

Personal umbrella insurance is an extra layer of protection that can help cover costs if you’re sued for damages. It can help pay for things like medical bills, attorney fees, and even damage to property. Most personal umbrella policies have limits of $1 million or more, and some even go up to $5 million.

While personal umbrella insurance isn’t required by law, it can be a good idea to have if you own a home, have significant assets, or are otherwise at risk of being sued. Umbrella insurance can provide peace of mind in knowing that you’re protected from financial ruin if something unexpected happens.

How much personal umbrella insurance should you get?

This is a difficult question to answer because it depends on many factors, such as the value of your assets, your income, and your lifestyle. However, there are some general guidelines you can follow.

If you have a high net worth, you should consider getting more umbrella insurance than someone with a lower net worth. This is because you have more to lose if you are sued.

Your income also plays a role in how much umbrella insurance you need. If you make a lot of money, you may be sued for more than someone who makes less money. Therefore, you may need more coverage.

Your lifestyle also affects how much umbrella insurance you need. If you live an active lifestyle and participate in risky activities, you may need more coverage than someone who lives a more sedentary lifestyle.

What does personal umbrella insurance cover?

Personal umbrella insurance covers a range of potential liabilities, including those that may arise from accidents, injuries, and property damage. It can also provide coverage for certain legal expenses, such as those related to defense costs and settlements. While the specific coverages included in a personal umbrella policy will vary by insurer, most policies will provide some level of protection against:

-Bodily injury liability: This can help cover the costs of medical bills and other damages if you’re found liable for an accident that injures another person.

-Property damage liability: This can help pay for repairs or replacement costs if you’re found liable for damaging someone else’s property.

-Wrongful death: If you’re found liable for an accident that results in someone else’s death, this coverage can help with expenses like funeral costs.

-Personal injury: This can help cover the costs of legal expenses if you’re sued for libel, slander, or defamation of character.

-Income loss: If you’re unable to work due to an injury caused by an accident for which you’re found liable, this coverage can help replace lost wages.

How to get personal umbrella insurance

Personal umbrella insurance is designed to protect you from catastrophic losses. It kicks in when the limits of your auto or homeowners insurance have been reached and you are still liable for damages. An umbrella policy can provide an additional layer of protection by increasing your liability coverage and giving you peace of mind.

Here are some tips on how to get personal umbrella insurance:

1. Shop around and compare rates from different insurers.

2. Make sure to read the fine print and understand the coverage limit and exclusions.

3. Consider getting quotes from multiple insurers to get the best rate.

4. Ask about discounts, such as bundling with other types of insurance policies.


No one ever wants to think about what could happen if they’re sued, but it’s always better to be safe than sorry. That’s why personal umbrella insurance is a wise investment for anyone with assets to protect. But how much coverage should you get, and what exactly does umbrella insurance cover? As a general rule of thumb, you should get at least $1 million in coverage, but more is always better. Umbrella insurance covers a variety of things, including bodily injury, property damage, defamation, and even certain rental expenses. So if you’re ever faced with a lawsuit, you’ll be glad you have it.