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 Umbrella Insurance
American Alternative Insurance Corporation (AAIC)
United States Liability Insurance (USLI)
Stand-alone umbrella insurance is a good option if you need higher limits than what your auto or home insurer offers, or if another company has cheaper coverage.
The starting rate for umbrella insurance is generally $150 to $300 annually for a $1 million policy. For each additional $1 million that you add to a policy, the rate will typically go up $50 to $75 per year.
Geico’s umbrella insurance policy will cover claims that are beyond the financial limits or scope of your existing policies. It can add up to $1 million in additional liability coverage to car, boat, homeowners or professional insurance policies. The average cost of a $1 million policy is less than $300 per year. If you can take advantage of Geico’s multi-policy discount, or other discounts that you might be eligible for, you could bring the annual cost down to $100 or less.… read full answer
The Geico umbrella policy’s additional liability coverage can protect you from a serious financial hit. If you injure someone or damage their property, your liability insurance pays the claim up to the limit written in your policy. But if the loss exceeds the limit and you don’t have umbrella coverage, you’ll have to pay the rest yourself. For example, if someone gets hurt falling down your porch steps and wins a claim against you for $800,000, and your homeowners liability limit is $300,000, you may have to pay $500,000 out of your pocket. If you have Geico umbrella insurance, however, the policy would cover the difference.
Geico’s umbrella insurance also covers your defense costs in case of a lawsuit and pays for many kinds of damages other policies don’t. Examples include mental anguish, injuries caused by a pet, libel, injuries on a rental property, or even false arrest by a police officer.
Geico umbrella insurance offers generous coverage at a relatively low cost. You can get a personalized quote at (866) 272-5192 or on the Geico website.
Yes, it is worth having an umbrella policy if you have a high net worth that exceeds your auto or home liability insurance limits. Umbrella insurance provides additional liability coverage, typically starting at $1 million, and it usually costs at least $150 to $300 per year.
Because umbrella insurance is relatively inexpensive, it’s a worthwhile investment for those looking to protect their assets from costly liability claims. It also covers certain situations that don’t typically fall under … read full answerliability insurance, like libel and slander.
How To Decide If Umbrella Insurance Is Worth It
Add up the value of your assets, including your home equity, personal savings, and retirement accounts.
Compare your assets to the limits of your auto or homeowner’s liability insurance policy. If your assets exceed the current limits, then you should consider getting umbrella insurance.
Consider any factors that would make you more likely to have a liability claim filed against you, like owning a swimming pool or a dog.
Most home or auto liability insurance policies can only be purchased with maximum limits of $300,000 or $500,000, depending on the insurer. While these limits may be high enough for the average person, wealthier individuals with more assets may need even more protection. That’s when umbrella insurance is worthwhile. To learn more, check out WalletHub’s guide to umbrella insurance.
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