To file an umbrella insurance claim, you need to contact your umbrella insurance provider once you know that a liability insurance claim is going to exhaust the limits of your home or auto policy. You can file an umbrella claim while a liability claim is still in progress, and they can be handled by the same adjuster. Depending on the situation, you may need to provide your insurer with additional documentation, so be sure to contact your adjuster for more information.
You can only file an umbrella insurance claim if a home or auto liability claim has exceeded the limits of your policy. Most umbrella insurance policies will cover $1 million to $10 million in damage, though some companies offer even higher limits.
You need an umbrella policy if your total assets exceed your car or home insurance policy limits or if you have a high risk of being sued. An umbrella policy is an optional form of liability insurance designed to supplement existing coverage, and it typically costs $150 to $200 annually for $1 million in coverage. As a result, households with a high net worth are the most likely to need umbrella coverage.… read full answer
When You May Need an Umbrella Policy
Your assets are greater than your home or car insurance policy limits.
Your occupation puts you at high-risk for a lawsuit.
You own a trampoline, hot tub, or swimming pool.
You ski, hunt, surf, or participate in another hobby where you could injure someone else.
You own property, especially rental or investment properties.
You have a dog with a restricted breed or a bite history.
You are a public figure.
You own guns.
You frequently host guests.
A common rule of thumb is that households should have an umbrella policy if they have $1 million or more in assets. Umbrella policies are also a good investment for people whose assets will likely increase considerably in the future, as liability settlements can sometimes result in wage garnishment. For example, medical students are often advised to purchase umbrella coverage to protect their future income.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.