What is Personal Liability Umbrella Insurance?

April 3, 2016

What is Personal Liability Umbrella Insurance? Perhaps you have heard of Personal Liability Umbrella insurance and have some questions, or perhaps you are not familiar with the policy. We will start with a simple definition: Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the Continue Reading

What is Personal Liability Umbrella Insurance?

Perhaps you have heard of Personal Liability Umbrella insurance and have some questions, or perhaps you are not familiar with the policy. We will start with a simple definition:

Umbrella insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. from Wikipedia.com

Some Examples of How Personal Umbrella Insurance Works

As the policy name suggests, Umbrella Insurance protects you for liability claims that are greater than the protection offered by your primary (ie Homeowners, Auto, Watercraft etc.) insurance, or for claims that fall outside the specific coverage provided to you by your primary insurance.

If someone is hurt on your property your homeowners insurance would be your primary insurance to cover any claims made against you. If the amount of the claims is greater than the limit provided by your homeowners policy an Umbrella Policy may cover the difference up to the Umbrella Policy’s limit.

In addition to covering the monetary gap left by your primary insurance an Umbrella Policy may cover claims made for libel or slander, claims not generally covered under a traditional homeowners policy. Additional coverages that are unique to Personal Umbrella Insurance may include vandalism and invasion of privacy. Please note Personal Umbrella Insurance policies differ and the specific coverages should be discussed with your insurance professional.

Do I Need Personal Umbrella Insurance?

That question is best answered after a discussion with a trusted insurance professional, however, there are some circumstances that make it more important to have the extra protection provided by a Personal Umbrella policy. For example, if you own highly valued assets you may be at greater risk of being sued. An umbrella policy can help protect your assets in that case.

If you own rental properties it may be in your best interest to have Personal Umbrella Insurance coverage to protect you the circumstance in which someone sues you for damages caused by a tenant.

How Much Personal Umbrella Insurance Should I Have?

Your insurance professional can help you determine the right coverage amount based on the risks that you face and the assets you have to protect. In general, the greater the value of your assets the greater level of protection you should consider.

How Much Does Personal Umbrella Insurance Cost?

Personal Umbrella insurance is relatively inexpensive and may range from $150.00 to $250.00 per year for a $1,000,000.00 of coverage. Of course if you determine you need more protection the cost will increase.

How Do I Get Personal Umbrella Insurance Coverage?

Most often an Umbrella policy is purchased from the same insurance professional that provides your primary insurance. Here at the Ryan Agency we can help you determine if you need Umbrella protection, the amount that you should have and find the policy that best satisfies your needs. Please feel welcome to call us or stop into see us to discuss the benefits and costs of a Personal Umbrella Insurance policy.

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.