Umbrella Insurance

Insurance

Umbrella insurance is a supplemental liability policy that kicks in when your auto or homeowner's liability limits are exhausted. A $1 million umbrella policy costs $200-$400 annually and provides extraordinary protection against major lawsuits. Most insurers require underlying coverage limits (e.g., 250/500/250 auto, $300K homeowner's liability) before umbrella attaches. Critical for: high net worth households, families with teen drivers, swimming pool owners, landlords, professionals with assets to lose. Umbrella also covers things underlying policies don't — slander, libel, false arrest. Best insurance value per dollar for anyone with $500K+ net worth. Umbrella doesn't require itemizing assets to insurers.