Umbrella insurance is an extra layer of protection added to your other insurance policies. Umbrella insurance offers further protection against property damage, incidents/injuries involving non household members that occur at your home, libel/slander, malicious prosecution, landlord liability, and business liability. It can protect your valuable assets as well as your small business.
The best umbrella insurance offers various types of policies with competitive pricing. It will be easy to get a quote and apply for coverage and customer service agents will be able to assist you with the process. The best umbrella insurance also has high coverage limits.
Best Umbrella Insurance of 2021
Best for Personal and Business Coverage : Liberty Mutual
Liberty Mutual has strong ratings and offers policies for both personal and business coverage with high limits.
Payments for defense costs
Covers residents of your household
High business policy limits
Need to contact for pricing
Contact for policy details
Lower limit for personal policy
Liberty Mutual offers both personal umbrella and business umbrella policies. If you need coverage for yourself and your business, the sound company—with excellent financial strength ratings—is a great option. Liberty Mutual’s personal umbrella policy offers liability limits of $1 million or higher for your auto, home, or recreational vehicle policy. It includes payments for defense costs, attorney's fees, and other legal expenses. It also includes coverage for you and residents of your household. The business umbrella policy offers a limit of up to $35 million over your existing liability coverage and up to $25 million over another carrier’s primary liability policies.
Best for Mid-Size to Large Business Owners : Chubb
Chubb is one of the largest insurance providers in the world and offers policies specifically for small and mid-sized businesses.
Offers insurance overseas
Offers policies for businesses of all sizes
High policy limits
Need to contact an agent for coverage
Doesn’t offer insurance in all 50 states
Need to contact agent for more policy details
Chubb is a highly reputable business insurer that also offers personal insurance products. Founded in 1882, the company offers insurance in the U.S and 54 other countries and territories. Chubb has an “A++” Superior financial strength rating from AM Best. The umbrella and excess casualty policy from Chubb is geared toward smaller and mid-size companies but also offers coverage for larger global and national companies. No matter the size of your business, Chubb has an umbrella policy that will fit. Specialty umbrella policies also are available for the energy and construction industry. Policy limits are $50 million for mid-size businesses and $25 million for large business. The construction industry umbrella policy offers $25 million in excess liability coverage with higher limits available.
Best for Small Business Owners : Travelers
Travelers offers worldwide coverage to small business owners and their employees.
Financially stable company
Personal and business policies
Multiple policies to choose from
Lower coverage limits than other companies
Need to contact for pricing
Need to meet eligibility requirements
Travelers Insurance is the second-largest property and casualty insurer in the U.S., and all Travelers Companies are rated “A” or higher by AM Best in financial stability. Travelers Insurance offers both a personal and business umbrella insurance policy with limits that begin at $1 million and go up to $10 million depending on eligibility requirements. Coverage is worldwide and applies to the following: watercraft/aircraft liability, coverage for professional employees, newly acquired organizations, defense costs, and liquor legal liability.
Best for Members of the Armed Services : USAA
USAA offers insurance specifically for members of the military and their families and offers competitive pricing.
Up front pricing
Over 100 years of experience
Highly rated company
Need to be in the military to qualify
Low coverage limits
Must already have USAA insurance product
USAA (United Services Automobile Association) has been providing insurance to members of the U.S. military and their families since the 1920s. USAA has an “A++” Superior financial strength rating from AM Best. In addition, it has won numerous customer service awards from insurance rating organizations such as J.D. Power & Associates. Its personal umbrella insurance is offered in policy term limits of one year and has a limit of up to $5 million. To be eligible for a personal umbrella insurance policy, you must have an existing USAA home or auto policy and be a member of the U.S. military or a family member of someone who is. Coverage is worldwide and applies to all members of your household.
Best for Recreational Vehicles/Watercraft : Allstate
Allstate offers worldwide coverage and includes watercrafts, recreational vehicles, and motorcycles.
Policies cover second homes
Policies cover lost wages
One of the biggest personal insurers
Lower policy limits
Need to contact agent for pricing
Contact for policy details
Allstate is one of the biggest personal insurers in the U.S. and has been offering insurance coverage since 1931. It is a financially sound company with an “A+” Superior AM Best financial strength rating. The personal umbrella policy from Allstate adds additional liability to your underlying policies for primary and secondary residences, residential rental property, automobiles, motor homes, recreational vehicles, watercraft, personal watercraft, and motorcycles. Allstate offers personal umbrella policy limits from $1 million to $5 million. Your excess liability coverage is worldwide and the policy will also pay for lost wages if you must appear in court.
Best for Vacation Rentals : GEICO
Geico offers umbrella insurance specifically for vacation rentals and second homes and is a reputable highly rated company.
Subsidiary of Berkshire Hathaway
Liability claims are covered
Tenant incidents are covered
Need to contact for policy types
Contact for pricing details
Low coverage limits
At its inception, GEICO (the Government Employees Insurance Company) offered insurance only to government employees. Of course, GEICO insurance is now available to everyone, and it is one of few insurers that cover vacation rentals under its umbrella policy. GEICO is a subsidiary company of Berkshire Hathaway and has an “A++” Superior financial strength rating from A.M. Best. The company offers an additional $1 million in umbrella coverage to policyholders who have underlying auto or homeowners policies. For owners of vacation rentals, the policy covers liability claims resulting from personal injury and incidents involving a tenant (for example, if a tenant's dog bit someone).
All of the providers that made our best umbrella insurance list are industry leaders with years of insurance experience. Some specialize in small business owners and others offer specific coverage for watercrafts and recreational vehicles. Overall, we recommend checking out Liberty Mutual for personal and business coverage. It offers multiple types of policies and there are available discounts for policyholders.
Compare The Best Umbrella Insurance
|Company||Price||Coverage Limit||Policy Types (#)||Discounts Available (y/n)|
Best for Personal and Business Coverage
|Contact for pricing||$35 million||Multiple||Yes|
Best for Mid-Size or Large Business Owners
|Contact for pricing||$50 million||Several custom policies||Yes|
Best for Small Business Owners
|Contact for pricing||$10 million||4||Yes|
Best for Members of the Armed Services
Best for Recreational Vehicles/Watercraft
|Contact for pricing||$5 million||Multiple custom policies||Yes|
Best for Vacation Rentals
|Contact for pricing||$1 million||Not disclosed||Yes|
Guide to Choosing the Best Umbrella Insurance Company
Do You Need Umbrella Insurance?
Not everyone needs umbrella insurance so assess your needs and your current situation before making a decision. If you’re a high net-worth individual you are typically at a higher risk for lawsuits, so an umbrella insurance policy will provide additional coverage. If you own a small business or vacation rental properties, umbrella insurance may also be beneficial for you. It can offer protection from possible monetary damages and potential lawsuits.
Comparing Umbrella Insurance Companies
When deciding on any type of insurance, it’s important to compare providers. Choose a provider with positive overall reviews and keep the following in mind:
- Available coverage: Know what type of coverage is available and how many plans there are to choose from and if coverage can be customized to your needs.
- Discounts: What discounts are available? Some common discounts include bundling and multiple years without having a claim
- Bundling: Does the provider offer other types of insurance products? Can you bundle them? Do you have to already have coverage from the company to be able to purchase an umbrella insurance policy?
- Specializations: Know what the company specializes in and who its core clients are. Some companies cater to high net worth individuals and others cater to small business owners.
Selecting An Umbrella Insurance Provider That Works For You
After you have selected an umbrella insurance company that meets your needs, it’s time to apply for a quote and then select and enroll in a policy. Some companies offer free online quotes and others have agents who will assist you over the phone. Some policies automatically renew each year and most require payment upon enrollment. You can typically pay with a credit card and manage your policy online. Some companies also have apps that you can download on your smartphone or tablet and manage your policy on the go.
Frequently Asked Questions
What is Umbrella Insurance?
Umbrella insurance provides protection above and beyond your regular policy. It can be a separate policy or an addition to your current policy and covers property damage, injuries that occur on the property, libel, and certain lawsuits involving business and landlord liabilities.
It can’t be purchased in lieu of your regular insurance policy, and you usually need to have more than the minimum insurance coverage to qualify for an umbrella policy.
How Does Umbrella Insurance Work?
Umbrella insurance covers claims in excess of your current policy, such as a homeowners or watercraft policy. It covers the policyholder and other family members at the same residence. It can be used to protect you from being sued above and beyond your policy limits.
Who Needs Umbrella Insurance?
Umbrella insurance is typically needed by:
- High net-worth individuals: More than $1 million
- Real estate investors
- Those with valuable assets such as exotic sports cars
- People who own dogs or dangerous pets
- Boat owners
- Youth sports coaches
- People who often host events at their home
How Much Does Umbrella Insurance Cost?
Stand-alone policies typically are more expensive than adding coverage with your primary insurance company. Average umbrella insurance costs are $150 to $300 per year for a $1 million policy, another $75 for the next million, and another $50 for every million after that.
We researched and reviewed more than a dozen of the most popular insurance providers that offer umbrella insurance. We chose reputable companies with years of insurance industry experience. We considered criteria such as types and number of policies offered as well as pricing if available. We also looked at coverage limits and how you can get a quote and apply for a policy.