What is umbrella insurance?

An umbrella is extra liability coverage that sits on top of your auto, home, condo, or renters policy. If you're responsible for a serious accident, it can help pay what those policies don't, up to the umbrella's own limit.

The Illinois Department of Insurance describes it as a policy that "floats" above your other coverage and kicks in if you're sued for more than your homeowners policy's limits.

Here's a simple example. Say your auto policy covers up to $250,000 for one person's injuries, and you cause a crash that leads to a $600,000 judgment. Your auto policy pays up to its limit. If the claim is covered, an umbrella could help pay the remaining $350,000.

What an umbrella typically covers

  • Injuries to other people from a car crash, a fall on your front steps, or a dog bite
  • Damage you cause to someone else's property
  • Legal defense costs, depending on the policy
  • Some claims your other policies may not cover, such as libel or slander, depending on the policy

What does an umbrella policy usually not cover?

An umbrella is designed to cover your liability to other people, not your own property or injuries. Most policies typically exclude:

  • Damage to your own home, car, or belongings
  • Your own medical bills
  • Business activities, which usually need business insurance instead
  • Harm you cause on purpose
  • Vehicles, boats, or rental properties that aren't disclosed or insured underneath the umbrella

That last one is the gap we find most. Exclusions vary by policy, so if you're unsure about a situation, call and ask before it happens.

Do I need other coverage before I can buy an umbrella?

Yes. The Illinois Department of Insurance notes that you must carry a certain amount of underlying liability coverage before you can buy an umbrella policy.

The required amounts depend on the insurance company and the policy. If your auto or home limits fall below what the umbrella requires, you may have to pay the difference yourself after a claim. We check your underlying limits whenever we review an umbrella with you.

Does an umbrella cover uninsured drivers in Illinois?

Not automatically. Illinois law says companies that write umbrella or excess policies are not required to include uninsured or underinsured motorist coverage, though they may offer it (215 ILCS 5/143a-2(5)).

That means your protection against an uninsured driver may come only from your auto policy. Ask us about your uninsured and underinsured motorist limits on your auto insurance, and whether your umbrella offers that coverage.

In Arizona, contact the Arizona Department of Insurance and Financial Institutions with questions about insurance rules there.

Who should think about an umbrella policy?

Anyone with a home, money in the bank, or a paycheck to protect may want to consider one. In practice, the calls often come from parents the week a teenager gets a license, or from people who just adopted a dog or put in a pool. Owners of a two-flat with tenants upstairs call, and so does anyone who hosts a lot.

How we work on umbrella insurance

We lay your policies side by side. Auto, home or condo, the rental two-flat, the boat, and we read the liability limit off each one. An umbrella only does its job if everything underneath it meets the limits the umbrella requires. The problem we find most often is a vehicle or a rental property the umbrella was never told about. That's the check we do first, and again whenever you add something.

Then we talk about how much. There's no formula we'll pretend is exact. We look at what you own, what you earn, and what you do that puts you around other people, and we show you what a few limits would cost. If a claim ever reaches past your auto or home limits, call us as well as the claims line, and see our claims page.

What to have ready when you call

When you're ready, call us for a quote.

  • Your current auto, home, condo, or renters declarations pages. The pages that list limits, not the ID cards.
  • Everyone in your household, including drivers and their ages
  • All your vehicles, including motorcycles, boats, ATVs, and RVs, even the ones in storage
  • Any rental properties you own
  • Whether you have a pool, trampoline, or dog
  • Any past claims or lawsuits

Common questions

How much umbrella coverage do I need?

There's no single answer. Many people look at what they own, their future income, and their everyday risks, like driving and hosting guests. We'll walk through the limit options with you.

Can renters buy an umbrella policy?

Often, yes, as long as you carry the underlying liability coverage the umbrella requires, typically on your renters and auto policies.

Does a personal umbrella cover my business?

Typically not. Personal umbrella policies usually exclude business activities. If you own a business, even a side one, ask us about business insurance.

Does an umbrella policy cover my rental property?

It may, if the property is listed on the umbrella and carries its own underlying liability coverage. A rental the umbrella was never told about is often excluded, so tell us about every property you own.