A dad and his very active young son on the stairs.


Why you need umbrella insurance

Accidents happen. That’s why you have car and homeowners insurance. But, you could need more coverage than those policies provide. Say, if you are found liable for an accident that requires you to pay more than your auto or homeowners insurance policy covers.

That’s where umbrella coverage will protect you. Umbrella insurance steps in to fill the gap (up to the policy limits) between the amount your auto, home, or boat policy will pay and what the total amount of money is required when there is a claim or lawsuit against you. That way, you’re not stuck paying out of pocket for amounts over and above your regular policy’s coverage.

Three reasons umbrella coverage is for you

Driver checking his mobile phone while driving

If you have a driver's license...

...you really need the extra protection an umbrella policy provides. If you are at fault in an accident, you may be on the hook for everything from the other person's medical expenses to their lost wages, pain and suffering, damaged property, and more. If you are found responsible for injuring more than one person, those costs can increase exponentially. 

Group of friends enjoying a meal

If you entertain or people visit your house...

...especially children or elderly people, umbrella insurance should be part of your asset-protection strategy. The costs to cover the injuries of a person who slips and sustains a head injury or badly breaks a leg can easily exceed your homeowners coverage amount.

Young woman pitcher winding up to throw

If anyone in your household is active in sports...

...or you have a pool, you need umbrella coverage. Eye injuries and head injuries such as concussions are very common, and pool accidents can be deadly. Make sure you have enough coverage to keep your current lifestyle intact if there is a claim or lawsuit against you. 

Couple talking about Excess Liability Coverage


Umbrella insurance is inexpensive.

A policy that protects you for up to $1 million generally costs less per day than a large coffee does. 

Photo of a courthouse entrance

What does an Umbrella policy provide?

Higher coverage limits. Up to $5 million for liability costs that are in addition to the costs your auto, home, or boat policies cover.

Coverage for legal costs. The policy pays, up to the policy limit, for:

  • The judgment or settlement amount
  • The legal fees you incur during your defense that are not covered by your auto or home policies
  • Associated court costs
  • Any interest that accrues on the judgment prior to final settlement

More types of coverage. Your homeowners policy won't cover you for accidental invasion of privacy, inadvertent libel or slander or several other activities that can lead to you being sued. An umbrella policy will. These types of lawsuits are very common -- just check the news.

Product, service, program, credit, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services or coverage. For more information, please contact Electric Insurance Company at 800.342.5342. If there are discrepancies between the information on this site and the policy, the terms in the policy apply.
Electric Insurance Company Risk Coach™ professionals help you assess your current coverages and exposure to risk based on the information you provide during your discussion. The services provided are for informational purposes only and do not create a professional or fiduciary relationship. Incomplete information or a change in your circumstances after your meeting may affect coverage requirements or recommendations.