Accidents happen—and sometimes the fallout goes beyond what your standard insurance can cover. That’s where umbrella insurance, also known as personal excess liability insurance, comes in.
It acts as a financial safety net, providing additional liability protection when your home, auto, or business policy limits are exceeded. In today’s world, where lawsuits and medical bills can quickly spiral, umbrella coverage offers peace of mind and powerful protection.
Let’s take a closer look at how it works, who needs it, and how to make sure you’re fully covered.
What Does Umbrella Insurance Cover?
Umbrella insurance kicks in when the liability limits on your other policies (like homeowners insurance or car insurance in Florida) have been exhausted.
It typically covers:
- Bodily injury liability (e.g., a guest injured at your home)
- Property damage liability (e.g., an accident where you’re at fault)
- Legal fees associated with lawsuits
- Personal liability incidents like defamation or slander
For business owners, it adds protection on top of your commercial insurance or business insurance in Florida policies, which can be essential in high-risk industries.
It does not cover your own injuries or property damage—that’s what your base policies are for—but it helps protect your assets when the unexpected hits hard.
Do You Really Need Umbrella Insurance?
While not everyone needs umbrella coverage, many people would benefit from it without realizing.
You should consider umbrella insurance if you:
- Own a home, rental property, or multiple vehicles
- Have significant savings, investments, or future income to protect
- Have a teenage driver on your personalized car insurance policy
- Own a swimming pool, trampoline, or boat
- Are a public figure or business owner
- Regularly host guests at your home
- Drive frequently for work or manage a fleet (personal and commercial auto insurance)
In short: if there’s a chance you could be held liable for more than your policy limits, umbrella insurance is worth the extra layer of protection.
How Much Does Umbrella Insurance Cost?
You might be surprised by how affordable umbrella insurance is—especially considering the protection it offers.
Typical premiums range from $150 to $300 per year for $1 million in coverage. Additional millions of coverage are available at lower incremental costs.
Factors that affect pricing include:
- The number of properties or vehicles you own
- Your driving history
- Your risk profile
- Whether you bundle it with your other policies through a trusted insurance agency in Florida
How Does Umbrella Insurance Work with Other Policies?
Umbrella coverage is not a standalone policy. You need to have underlying insurance policies in place—like homeowners, auto, or commercial insurance—to qualify.
Here’s a simple example:
If your auto insurance liability limit is $300,000 and you’re sued for $1 million after a serious accident, your umbrella policy would cover the remaining $700,000—protecting you from financial ruin.
It literally sits on top of your other policies as an added shield.
Frequently Asked Questions
Does umbrella insurance cover rental properties?
Yes, if you own rental property, umbrella insurance can cover liability claims made against you as a landlord.
Is umbrella insurance only for wealthy people?
Not at all. It’s for anyone who wants to protect their current and future financial security. You don’t need to be wealthy to be at risk for a lawsuit.
Can I get umbrella insurance for my business?
Yes, many commercial insurance companies in Florida offer umbrella coverage for businesses to extend their liability protection. This is especially helpful if you operate in a high-liability industry.
Do I need to get umbrella coverage from the same insurer?
Often, yes. Most insurers require that your home and auto policies be with them before offering umbrella coverage. It’s also easier to manage claims that way.
How to Make Sure You’re Protected
If you’re unsure whether umbrella insurance makes sense for you, ask yourself: ✔ Do I have enough liability coverage for worst-case scenarios?
✔ Could a lawsuit or accident put my assets at risk?
✔ Do I have teenage drivers, rental properties, or recreational vehicles?
✔ Do I own a business or work in a high-risk field?
If the answer is yes to any of these, umbrella coverage could be a smart addition to your insurance plan.
Let ThompsonBaker Help You Decide
At ThompsonBaker, we believe in preparing for the unexpected. As a local, trusted insurance agency in Florida, we help individuals and business owners find the right umbrella policies to protect what matters most.
We’ll walk you through your options and review your current coverage so you can make informed decisions with confidence.
Want to know if umbrella insurance is right for you? Reach out to our team today.
