A major multi-vehicle accident or severe injury on your residential property can easily result in judgments exceeding standard $300,000 home or auto liability limits.

1. How Umbrella Insurance Operates

A Personal Umbrella Policy (PUP) provides secondary liability coverage in increments of $1,000,000 (up to $10,000,000+) that activates once primary auto or homeowners policy limits are exhausted.

2. Underlying Minimum Requirements

Umbrella insurers require maintaining underlying primary policy limits, typically $250,000/$500,000 bodily injury on auto policies and $300,000 personal liability on homeowners policies.

3. High Value for Modest Cost

Because umbrella claims are relatively infrequent, a $1,000,000 umbrella policy typically costs between $150 and $300 per year, making it one of the most cost-effective wealth protection tools available.