Here’s the short answer:
- Umbrella coverage is a type of supplemental insurance.
- It adds to the liability coverage you already have on your home and auto policies.
- This extra coverage kicks in when a covered claim exceeds your home or auto policy limit.
- A personal umbrella can cover multiple homes and vehicles.
Question I already have home and auto policies—but I don’t understand why I need both to buy an umbrella policy. Can you explain this?
Matthew McCarter is a Farmers Insurance® agent in Chester Springs, Pennsylvania. He discusses how umbrella insurance works in conjunction with your other policies.
Answer By definition, umbrella coverage is supplemental or “excess” liability coverage. In order to have this coverage, you need to have auto and home (or renters) coverage to begin with. If you’re responsible for injury to someone else or damage to their property, your home or auto coverage will cover you first. If the claim exceeds your policy limit, the umbrella policy may cover the rest up to your policy limit. Farmers offers umbrella coverage in $1 million increments — up to $10 million.
Farmers can provide umbrella coverage even if only your auto policy is with us, so long as you have a second policy from another carrier that provides underlying liability insurance and meets certain other criteria. Also, Farmers can cover multiple homes and vehicles you own with just one policy.
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