Lilah Butler, Car Insurance Writer
@lilah_c
A $4 million umbrella policy costs around $325 to $475 per year, on average. Every policyholder’s umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.
Average Umbrella Policy Costs
- $1 million umbrella policy: $150 - $300 per year
- $2 million umbrella policy: $225 - $375 per year
- $3 million umbrella policy: $275 - $425 per year
- $4 million umbrella policy: $325 - $475 per year
- $5 million umbrella policy: $375 - $525 per year
Umbrella insurance applies after the liability limits on another policy, such as a homeowners or auto insurance policy, have been exhausted. Most umbrella policies also cover claims for things like slander and libel. But since umbrella claims are infrequent, coverage is generally inexpensive.
For more information, check out WalletHub’s complete guide to umbrella insurance.
People also ask
How much does a $1 million umbrella policy cost?
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...
read full answer by Lilah Butler, Car Insurance WriterWhat 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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