Umbrella Insurance

Understanding Umbrella Insurance

KEY TAKEAWAYS

Your Existing Insurance Has a Ceiling. Umbrella Insurance Covers What's Above It.

Your auto, homeowners, or renters policy each have liability limits. If you cause a serious car accident, a guest is injured on your property, or you are sued for defamation, the costs can easily exceed those limits. When that happens, you are personally responsible for the difference. Umbrella insurance picks up where your other policies stop, providing an additional $1 million or more in liability protection to shield your savings, your home, and your future earnings.

It Covers Scenarios Your Other Policies Don't

Beyond extending your existing liability limits, umbrella insurance also covers claims that standard policies often exclude entirely. This includes lawsuits for slander, libel, false arrest, and malicious prosecution. It also covers legal defense costs, even if the lawsuit against you turns out to be groundless. If you own rental property, it can protect you from tenant-related liability claims as well.

A Million Dollars of Protection Costs Less Than a Dollar a Day

A $1 million umbrella policy typically runs between $150 and $300 per year. Each additional million in coverage costs even less. For homeowners, landlords, parents of teen drivers, or anyone with significant assets to protect, this is one of the most affordable ways to avoid a financial disaster from a single lawsuit or accident.

Most of us have insurance for our homes and cars. But did you know that even the most comprehensive policies can leave you exposed to a potentially calamitous lawsuit? That’s why there’s umbrella insurance, a type of coverage that can handle just about everything under the sun. Want more details? Check out our answers to the most common questions people have about the insurance policy of insurance policies.

At its most basic, what is umbrella insurance?

It is a type of liability coverage that goes above and beyond what you would find in typical home, auto and boat insurance policies. It’s designed to protect you from claims and lawsuits in two ways: by covering things that aren’t included in other policies; and by giving you coverage above the limits in your typical policy.

What exactly does umbrella insurance cover?

Like the name suggests, umbrella policies can cover a wide array of potential mishaps. If your dog bites someone in the park, it could cover that. If your neighbor slips on your driveway and dislocates a shoulder, it could cover that. And if you’re liable for a car accident which exceeds the limits of your auto insurance policy, umbrella coverage could kick in to take care of the remainder.

How can the extended coverage limits help me?

Umbrella policies kick in once you’ve reached the maximum payout allowed under your normal home, auto or boat policy. For example, let’s say you crash into another car on the highway, leaving its driver with $500,000 in hospital bills. If your regular auto policy has a $300,000 bodily injury limit, you could be responsible for $200,000. But if you have an umbrella policy, it would spring into action, covering that final $200,000.

Where can I find information about umbrella insurance?

Visit our website to learn more about our policies and how they can help. You can also call 1-866-272-5192 for a personalized quote.

It’s always good to ask questions. That’s why GEICO customer service agents are available by email, phone or mail to answer any queries you may have. Find a whole list of ways to contact us here.

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At its most basic, what is umbrella insurance?
What exactly does umbrella insurance cover?
How can the extended coverage limits help me?
Where can I find information about umbrella insurance?
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Please note that the information above is meant to help you better understand insurance coverage in general. This content is for educational purposes only and does not serve as an actual insurance policy, nor does it change any terms or details in your own policy. Because insurance options can vary depending on your insurer, where you live, and what's available, we recommend that you review your policy documents and speak with a licensed insurance expert if you have questions about your coverage. Any examples of premiums, losses, deductibles, or repair costs are just for illustration and might not reflect your personal situation. Whether an accident or loss is covered will depend on the specific rules and details in your policy. Also, if you click on any links to other websites, we are not responsible for their content.