BEST UMBRELLA INSURANCE COMPANIES OF 2023

Established companies with years of experience in the insurance industry offer the best umbrella insurance policies. Landlords‘ umbrella insurance coverage kicks in once their primary policies’ liability limits are exhausted. Consider purchasing umbrella coverage immediately if you live in Florida. Florida residents should purchase umbrella insurance to safeguard their finances if a claim exceeds the limits of their primary policies.

Best Umbrella Insurance

Umbrella insurance is a form of liability insurance that provides additional protection on top of an existing coverage (the “underlying policies”). Car, property, and renters insurance policies all fall under this umbrella. Depending on the policy you obtain, umbrella insurance can protect you from either business or personal liabilities. Accidents like these, as well as those involving dogs, pools, and automobiles, are examples of the types of claims typically covered by personal umbrella policies.

Best Umbrella Insurance Coverage

The liability coverage provided by your auto, home, and watercraft insurance policies is supplemented by the “excess liability insurance” provided by an umbrella policy. It is for when medical costs and/or repair costs exceed what your “basic” auto, home, or watercraft insurance covers.

To qualify for umbrella insurance, most companies will require you to have coverage for at least some of your vehicles and your home. Your home insurance policy may require $300,000 in coverage, while your car insurance may mandate $250,000 in medical payments coverage and $100,000 in property damage coverage.

You should evaluate your current situation, your insurance requirements, and the policies you already have in place before deciding if umbrella insurance is necessary. You should think about getting umbrella insurance if you have a high net worth and are subject to lawsuits.

Umbrella insurance can be a good choice for individuals and small business owners who are worried about being sued and the financial consequences of a lawsuit.

How Much Does Umbrella Insurance Cost?

The amount of coverage you purchase, your state of residence (insurance rates vary by state), and the risk you pose to your insurer all go into determining your umbrella liability insurance premiums. The cost of insurance goes up as the number of people in a household and the number of vehicles increases.

In most cases, a policy covering $1 million will run you between $150 and $300 a year, according to the Insurance Information Institute. Costs rise by about $75 annually for an additional $2 million in coverage, and by another $50 for each additional $1 million after that. Typical limits for umbrella liability insurance from major providers begin at $1 million.

How to Save Money on Umbrella Insurance

#1. Seek professional help

Consultation with an insurance expert is highly recommended for performing the coverage assessment. Look for a broker or insurance agent that represents multiple companies and specializes in commercial insurance.

#2. Find the Best Price by Comparing Quotes

All or nearly all of the policies you are comparing should share the same coverage options, deductibles, and limiting clauses. You can get quotes on business insurance from the organizations a broker or marketplace represents. In addition, you might want to consider adding quotes from businesses you contact directly, such as some on our list.

#3. Look for Policy Bundling Discounts

Multiple-policy discounts are common among insurance providers. In addition to the monetary savings, bundling coverage can also simplify administrative tasks like making payments, contacting support, and submitting claims.

#4. Check Your Business Insurance Often

When it comes to business insurance, it is always a good idea to look back over past claims and see if you have outgrown your current limits. Reducing your coverage or raising your deductibles could help you save money on your premiums.

Not only should you review your company’s coverage and policies annually, but also whenever there is a significant shift in your company’s needs or circumstances.

Best Umbrella Insurance Company

#1. Liberty Mutual

Liberty Mutual has offered a wide variety of coverage options “to meet the ever-evolving needs of its customers.” AM Best continues to give the firm a perfect score of A (Excellent).

Limits for personal umbrella insurance, which protects you and your loved ones from financial ruin in the event of a legal suit, begin at $1 million. Umbrella insurance from Liberty Mutual extends the liability protections of your auto, boat, home, and renter’s policies beyond their original limits.

Commercial umbrella insurance from Liberty Mutual Insurance can provide additional coverage of up to $100 million. What this means is that you can get commercial umbrella coverage from Liberty Mutual without having to buy any of their other commercial insurance policies first.

When a claim threatens a company’s reputation or brand, they can receive up to $250,000 in consulting services from Liberty Mutual’s crisis management division.

#2. Chubb

Someone with a lot of money who wants a high-quality service should choose Chubb. High policy limits, cash settlement options, and security against cyberattacks are just a few of the unique products offered by this company. It continues to hold AM Best’s highest rating of A++ (Superior). The firm provides umbrella insurance policies with coverage amounts between $1 million and $100 million for both individuals and businesses.

In addition to any settlement amount, Chubb’s umbrella insurance policies will pay for any legal fees incurred as a result of the insured event (legal defense fees are not counted toward the policy’s limit of liability).

Your policy will also cover you in the event of a lawsuit for defamation of character, such as libel or slander. Furthermore, it will provide an additional safety net in the event of an accident with an uninsured or underinsured motorist. Although Chubb’s insurance is not available in all 50 states, the company does have 44 locations spread out across the country.

#3. USAA

It now provides a variety of insurance options to nearly 13 million active-duty and veteran service members and their families. AM Best has awarded USAA its top rating of A++ for Superior financial strength. Personal umbrella coverage is available in all 50 states through USAA. There is no option for commercial umbrella insurance

It offers personal umbrella insurance policies with limits ranging from $1 million to $5 million. Umbrella insurance from USAA is only available to members, so either you or a family member must be currently serving in the military or a veteran. Umbrella coverage is available only to USAA members who also have their auto insurance through the company. This enables the company to reduce coverage gaps and streamline the claims process. Membership in USAA gives members the choice of keeping their home insurance with USAA or another company.

#4. Travelers

Business owners of all stripes can get protection from the company’s umbrella policies. AM Best has consistently given Travelers its highest possible rating of A++, which represents Superior performance. Insurance plans are offered nationwide.

Limits for individual umbrella policies start at $1 million and go as high as $10 million. Higher limits require specialized underwriting. The standard umbrella, excess liability, monoline umbrella, and excess surplus are the four different types of excess coverage that Travelers offers to business owners. Liability insurance policies typically begin at $1 million and increase with revenue, assets, and risk profile.

Travelers’ umbrella insurance can provide coverage for liability claims made against your homeowner’s, automobile, boat, rental property (landlord), or recreational vehicle policies anywhere in the world. Travelers offer insurance policies for rental properties across the country, joining the company’s roster of other products like auto and home insurance. You can get a better rate if you have other policies with Travelers, but it is not required.

#5. Geico

Although it is best known as an auto insurer, Geico also provides personal umbrella insurance to customers in all 50 states. AM Best continues to give the company an A++ for financial stability.

Before you can purchase an umbrella policy from Geico, you must first meet the company’s minimum liability limits for auto, home, and boat insurance. You can get an additional $5,000,000 in coverage from the insurer on top of what your auto and homeowner’s policies provide.

When you bundle your auto, home, and umbrella policies with Geico, you can save money. As a result, you can save individually and avoid additional fees.

#6. Allstate

Allstate has an A+ rating from AM Best and provides umbrella coverage for both individuals and businesses. A typical personal umbrella policy can cover anywhere from $1 million to $5 million in coverage. Allstate’s umbrella policy extends coverage for things like medical expenses, lost wages, and property damage to your landlord.

If you have an accident while driving in another country, for example, these policies will pay for your medical bills and other expenses incurred as a result. Depending on the insurer and the company’s total risk, commercial policies can begin at a million dollars.

Allstate targets boat owners and vacationers who charter boats. The costs of accidents on the water, like those incurred while water skiing at Lake Tahoe, are factored into the premiums. In the event of an accident or legal liability, the policy will cover the costs, regardless of where you happen to be.

The variety of policies offered by this firm includes protection for your car, house, condo, rental property, boat, belongings, and even an umbrella should the weather turn bad.

Best Umbrella Insurance for Landlords

Umbrella insurance is a type of insurance that extends the protection of a primary policy. Landlords who invest in umbrella insurance for their rental properties have an extra buffer against the risk of financial ruin in the event of a liability suit with high award amounts.

Although liability coverage is included in most landlord insurance policies, the amount paid out may be too low to cover any damages awarded in the event of a successful lawsuit. This could leave you responsible for covering the cost of the liability claim’s shortfall out of pocket. While umbrella policies typically have coverage limits that are much higher than those of their underlying policies, this is not always the case.

Neither the primary policy nor the umbrella policy may cover a liability claim in full, so you may have to come up with the difference yourself. So, landlords need to read the fine print of their umbrella policy to find out the exact coverage limit and any other conditions or limitations that may apply.

What Umbrella Insurance Covers for Rental Properties

Umbrella insurance provides additional protection beyond liability coverage, but it is more customized. Details of umbrella insurance policies coverage may vary but typically include the following.

Claims arising from visitors’ injuries while on your property
Liability lawsuit legal fees
Loss or damage to someone else’s property on your premises.
Your tenant damages third-party property

Your umbrella insurance may not cover certain situations. While many insurance companies do provide umbrella policies, they typically do not protect against the following situations:

Personal injuries sustained on your property
Punitive damages
Business or professional activities, such as LLC rental businesses

Umbrella Insurance in Florida

If your homeowner’s or car insurance is unable to cover a claim, an umbrella policy in Florida will. Two adult drivers who also have home insurance typically pay around $150 per year for an umbrella policy that provides $1,000,000 in coverage.

What Does Florida Umbrella Insurance Cost?

You can expect to pay more or less for umbrella insurance in Florida depending on your desired level of coverage, geographical location, and other factors. Umbrella insurance policies typically cost between $150 and $300 yearly for $1 million in protection. The price tag, however, can skyrocket depending on how comprehensive a policy you require. If you want to get an accurate quote and ensure you have adequate coverage at a reasonable cost, it is best to consult with a licensed insurance agent or broker.

Is Florida a State That Mandates Umbrella Coverage?

Florida law does not mandate that residents carry umbrella coverage. However, the added security it provides against monetary losses in the event of a lawsuit or accident makes it a must-have for any vehicle or homeowner. Without umbrella insurance, you could be responsible for paying astronomical damages if someone is injured on your property.

What Does an Umbrella Policy Not Cover?

If you get hurt or your property gets damaged, umbrella insurance does not cover it. It does not cover the policyholder’s property or damages or injuries that were done on purpose. These are some other issues that umbrella insurance usually does not cover:

Business losses
Your criminal activity
Written or oral contracts
Intentional wrongdoing by you
Nuclear radiation, war, or terrorist acts-related harm
An action brought against you for transmitting herpes, or another contagious disease

Do I Need Umbrella Insurance?

You will need an umbrella policy if the amount of your net worth exceeds the amount of liability protection offered by your standard insurance policies. This will help protect your assets if you are held responsible for an incident with severe financial repercussions.

Umbrella policies are good for people who are at risk of excess liability. Owning property, renting out space, hiring help around the house, installing a trampoline or hot tub, throwing large parties, or being a public figure all increase the likelihood that you will be sued. Umbrella insurance is something you should seriously consider investing in if you have any sort of exposure to legal action.

What Is the Most That the Umbrella Insurance Will Pay?

You can get as much money from your umbrella insurance as your policy limits will allow. If you are sued and are found to be at fault, your umbrella insurance will only cover up to the amount of your $1 million umbrella policy, for illustration.

Do Umbrella Policies Cover Everything?

Umbrella insurance provides coverage over what is provided by a primary policy. In the event of an accident, damage to property, legal action, or other personal liability, umbrella insurance may provide financial protection.

However, there is no all-inclusive insurance policy. Things your umbrella policy probably will not pay for are the following:

Damage that you or a covered family member purposely cause.
You agreed to accept liability by signing a contract.
Liability arising from war or armed conflict
Liability arising from commercial or professional activities.

Do Retirees Need an Umbrella Insurance Policy?

Insuring a car is a must for any senior citizen who still drives and owns a vehicle. An umbrella policy extends the liability protections of standard policies like auto and home insurance. These policies are helpful for people of all income levels.

What Is a Good Amount for an Umbrella Policy?

What your umbrella insurance covers should be equal to your total net worth. That is it if you have $1 million in assets. That is the amount of umbrella insurance you require. The cost of an umbrella policy for $1 million can be anywhere from $150 to $300 a year.

Is State Farm’s Umbrella Policy Worth It?

Purchasing an umbrella policy from State Farm is a smart move if your current liability limits do not adequately protect your assets. Purchasing extra insurance through an umbrella policy is a smart way to safeguard valuables. If you cause an expensive car accident and other people get hurt, for instance, and the other people file a lawsuit against you, you could lose everything you own, including your bank accounts, homes, cars, and other valuables.

Is Umbrella Insurance a Good Investment?

Your home and auto insurance policies may not provide enough liability coverage, in which case an umbrella policy would be helpful. Having umbrella insurance can protect your wealth in the event of a lawsuit.

Conclusion

Umbrella insurance is useful for anyone who wants protection against the financial fallout of unexpected events like car accidents, property damage, and incidents involving teenage drivers or tenants. In terms of coverage amounts, an umbrella policy is typically the most extensive policy you carry. If you need insurance coverage worth a million dollars or more, you should shop around until you find the policy and provider that works best for you.