Here’s the short answer:
- Umbrella coverage is a type of supplemental insurance.
- It adds to the liability coverage you already have on your home and auto policies.
- This extra coverage kicks in when a covered claim exceeds your home or auto policy limit.
- A personal umbrella can cover multiple homes and vehicles.
Question I already have home and auto policies—but I don’t understand why I need both to buy an umbrella policy. Can you explain this?
Matthew McCarter is a Farmers Insurance® agent in Chester Springs, Pennsylvania. He discusses how umbrella insurance works in conjunction with your other policies.
Answer By definition, umbrella coverage is supplemental or “excess” liability coverage. In order to have this coverage, you need to have auto and home (or renters) coverage to begin with. If you’re responsible for injury to someone else or damage to their property, your home or auto coverage will cover you first. If the claim exceeds your policy limit, the umbrella policy may cover the rest up to your policy limit. Farmers offers umbrella coverage in $1 million increments — up to $10 million.
Farmers can provide umbrella coverage even if only your auto policy is with us, so long as you have a second policy from another carrier that provides underlying liability insurance and meets certain other criteria. Also, Farmers can cover multiple homes and vehicles you own with just one policy.
The information contained in this page is provided for general informational purposes only. Read our editorial standards for Insurance Questions and other content. We make no representations or warranties of any kind, express or implied. This does not refer to any specific insurance policy and nothing herein is intended to replace or modify any terms in your actual policy.
Farmers may also provide information on topics that are not directly about insurance policies or coverage that we believe could be helpful to you. Information in such articles is not meant as professional advice, and any reliance you place on such information is therefore strictly at your own risk.
Related articles
Confessions of a Boat Owner
