Lilah Butler, Car Insurance Writer
@lilah_c
A $1 million umbrella policy costs around $150 to $300 per year, with the cost increasing by $50 and $75 for every additional million. As with any insurance policy, your exact price will depend on individual risk factors, including the number of people in your household and how many cars and properties you own.
A $2 million umbrella policy will cost about $75 more than a $1 million policy, by the way. Every additional million in coverage after that will add about $50 to the total cost.
Umbrella insurance provides liability coverage beyond the limits of an auto or personal property insurance policy. For instance, policyholders can file an umbrella insurance claim if they are at-fault in a car accident that causes damage beyond their car insurance limits. Most umbrella policies also cover claims for things like libel, slander, and accidents that occur abroad.
To learn more, check out WalletHub’s complete guide to umbrella insurance.
People also ask
What are the pros and cons of umbrella insurance?
The pros of umbrella insurance are its low cost and the protection it gives you against expensive home or auto liability claims. The cons of umbrella insurance are that it doesn't cover your own injuries or property damage, and you must have an existing liability insurance policy before you can purchase it.
Pros of Umbrella Insurance
- Relatively inexpensive
- Coverage limits starting at $1 million
- Covers scenarios that don’t fall under normal liability insurance...
What is not covered by an umbrella policy?
An umbrella insurance policy does not cover your own injuries or damages to your own home, car or property. Personal umbrella insurance also will not cover intentional acts, criminal behavior, damage caused while you’re performing business activities, or damage from certain dogs or vehicle types. If you need umbrella insurance for business purposes, you can purchase a commercial umbrella policy.
What Umbrella Insurance Does Not Cover
- Your own injuries or property damage
- Property damage...
What is stand-alone umbrella insurance?
Stand-alone umbrella insurance is an umbrella policy that offers coverage to customers who use a separate provider for their home or auto insurance. Stand-alone umbrella coverage is not very common, and it is not offered by any major insurers. Umbrella insurance supplements the liability limits of a home or auto policy, after all, and an insurance company will almost always require customers to get all of the necessary coverage from them.
Companies That Offer Stand-Alone...
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