Depending on your circumstances, personal umbrella insurance may not be a luxury, but a necessity. If you rely solely on your current personal coverage, then you could be blindsided for thousands, if not millions, of dollars in legal judgements should the worse happen. Read our guide and learn who needs personal umbrella coverage and why leaving it behind could be costly.

What is personal umbrella insurance?

Personal umbrella insurance is a type of insurance meant to provide coverage above and beyond other personal insurance limits. It is especially helpful for anyone with high-value or a large amount of assets, and can protect the policy holder and their family from substantial financial loss in case of a lawsuit.

What is covered under a personal umbrella policy?

Personal umbrella insurance can cover a variety of scenarios that could leave you vulnerable to lawsuits, including:

  • Injuries caused by your family or pets
  • Bodily injury and damage as a result from a car accident
  • Property damage
  • Liability for landlords

And more.

What is not covered?

Personal umbrella policies typically won’t cover any business-related loss; you would need a commercial umbrella policy to protect your business assets from legal costs. Your umbrella policy also will not cover:

  • Damage that was done by you to your own assets or property
  • Any intentional damage cause by you or your family
  • Armed conflicts or war-related activities
  • Liability you agreed to and assumed after signing a contract

How much does personal umbrella coverage cost?

The cost for personal umbrella policies depends on how much coverage you are looking for, but are generally sold in $1 million increments. Your deductible will also depend on how much risk you present and which state you live in. On average, expect to pay between $150 to $300 annually for the first $1 million of coverage, then the price for each additional $1 million decreases.

How much personal umbrella insurance do I need?

The amount of personal umbrella coverage you’ll need will depend on many different factors, including:

  • The value of your current assets
  • How much you have in retirement
  • If you have higher risk circumstances (teenage driver, assets you rent or loan out, etc.)
  • Your current policy coverage limits
  • How much you have in home equity

For example for someone who has a net worth of $10 million, $5 million in retirement, $300,000 liability coverage, and $1 million in home equity would need $4 million of umbrella coverage to create complete protection.

I have homeowners insurance. Do I need personal umbrella coverage as well?

While you may think your homeowners coverage will take care of any potential issues with your home, there are times when having an umbrella policy could mean significant savings. For example, if you have guests in your home who sustain an injury on your property and receive a judgement over $1 million, your $500,000 homeowners coverage limit will leave you $500,000 poorer. But if you have an additional $1 million personal umbrella policy, then the other $500,000 will be covered by your insurance carrier.


All it takes is one car accident or one injured guest to wipe out your savings. Personal umbrella coverage provides a literal umbrella of coverage over your existing policies, leaving nothing to chance. To protect yourself and your family, a personal umbrella policy will help ensure the financial legacy you leave will remain intact.

The expert advisors at JAISIN will help you determine where your current personal policies are lacking, navigate the market for the best umbrella coverage, and can even help you save money on your current policies.

Click or call JAISIN Insurance Solutions today to speak with one of our personal umbrella specialists and get a quote for coverage today.

Skip to content